3 weeks ago
Apple transforms India into global iPhone manufacturing hub
Apple is a big company that makes iPhones.
For a long time, most iPhones were built in China.
Now Apple is also building lots of iPhones in India.
The Indian government gave companies money to help them build phones in India.
Today, five big iPhone factories in India give jobs to more than 200,000 people.
Many of these workers are young women who use their pay to help their families.
India makes millions of iPhones every year, even the brand-new iPhone 17.
Most of the phones made in India are sent to other countries, especially the United States.
Building in India also helps Apple avoid extra fees on phones made in China.
But China still makes more iPhones than any other country, so India keeps working to catch up.
Apple has turned India into one of its fastest-growing manufacturing destinations, with five iPhone factories employing more than 200,000 workers.
India produced roughly 55 million iPhones in the 12 months ended March and, for the first time, is making all four iPhone 17 models during their initial launch.
The government's ₹410 billion ($4.3 billion) production-linked incentives approved in 2019, plus an additional ₹625 billion package announced in July, fueled the electronics boom.
India made more than $25 billion worth of iPhones last fiscal year — nearly 80% exported, mainly to the US — and Apple's annual India sales topped $10 billion.
China still dominates Apple's supply chain, but Foxconn's 2025 recall of Chinese engineers from Indian plants shows rising friction in the technology rivalry.
- Who
- Apple and its suppliers, including Foxconn and Tata Group-controlled Pegatron, supported by the Indian government led by Prime Minister Narendra Modi.
- What
- India has become a major global iPhone manufacturing hub, producing all four iPhone 17 models and employing more than 200,000 workers across five factories.
- Where
- India, chiefly plants near Chennai in Tamil Nadu and near Bengaluru in Karnataka, competing with China's dominant manufacturing base.
- When
- The push accelerated after 2019 government incentives; production reached about 55 million iPhones in the 12 months ended March, and Apple's India sales exceeded $10 billion in the fiscal year ended March 2026.
- Why
- Apple wanted to reduce its dependence on China amid US-China trade tensions, and India's production-linked incentives and tariff advantages made it an attractive alternative.
Key facts
- iPhone production in India (12 months to March)
- Around 55 million units
- Factory employment
- Over 200,000 workers across five plants
- Production value (fiscal year ended March)
- More than $25 billion
- Export share
- Almost 80%, mainly to the US
- Apple India annual sales (FY ended March 2026)
- Over $10 billion, up 25% in two years
- Initial production-linked incentive scheme (2019)
- ₹410 billion ($4.3 billion) over five years
- New component manufacturing incentives (July)
- ₹625 billion
- iPhone share of Indian smartphone market
- About 10%, up from 1.5% a decade ago
Quotes
Reema Bhattacharya
Head of Asia risk insight at advisory firm Verisk Maplecroft
“"Restrictions on specialised equipment, skilled personnel and manufacturing know-how are unlikely to stop diversification altogether. But they can slow timelines, raise costs, and reduce efficiency, making the transition more complex and management intensive."”
businesstoday.in
“"I made 18,000 rupees a month, and sent most of it to my old parents in the village."”
businesstoday.in
Sources
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