India Rides the iPhone Wave: Exports Soar as Apple and Foxconn Double Down on Local Manufacturing

India's technology landscape marked a significant milestone as the country's Technology Minister Ashwini Vaishnaw announced that Apple exported iPhones worth over 1.5 trillion Indian Rupees, approximately $17 billion, during the previous fiscal year. This announcement came during a press conference in New Delhi, underscoring India's burgeoning role in the global smartphone manufacturing ecosystem.

As iPhone exports from India surge, the country is poised to expand its smartphone shipment value to over 2 trillion Rupees in the fiscal year ending March 2025, marking a 54% increase from the previous year. This growth emphasizes India's potential as a key player in the smartphone industry, driven by global companies seeking diversification in their manufacturing strategies. The push for increased manufacturing follows global shifts in trade policies, including tariff impositions by the United States, which have prompted companies like Apple to explore new manufacturing locations outside of their traditional bases.

In alignment with this transition, Foxconn, Apple's key manufacturing partner, is set to double its iPhone production in India by 2025. The plans involve ramping up production to between 25 million and 30 million units annually, a significant leap from the 12 million units assembled in 2024. This expansion is underpinned by Apple's strategy to diversify its supply chain and by the Indian government's supportive policies, such as incentive schemes aimed at enhancing local manufacturing capabilities.

Additionally, the Indian government has strategically removed import duties on essential components for smartphone production. This move, announced by India's Finance Minister Nirmala Sitharaman, aims to strengthen local manufacturing and boost the nation's export competitiveness by reducing the cost of production inputs.

Apple's initiatives in India are complemented by the involvement of local conglomerates, such as the Tata Group, which has taken significant steps by acquiring a majority stake in an assembly plant previously owned by Pegatron. This acquisition represents a pivotal advance in Apple's goal to elevate India's role to contribute approximately 15% of global iPhone production by early 2025. The company envisions increasing this share to 25% by 2027, illustrating a strategic shift to mitigate reliance on Chinese manufacturing hubs.