Made in India: Apple's Bet on a New Global Manufacturing Hub

India used to depend on high-tech manufacturing from countries like China and Vietnam. But in contemporary times, things have changed —India now exports technical components all around the world, even the parts of iPhones.

This article explores Apple's manufacturing shift from China to India, how this shift is going to impact Indian MSMEs, and sheds light on the reasons why India is attracting the world's attention in its journey to becoming a global manufacturing hub.

From Tariff War to Tech Shift

It all started on April 2, 2025, when US President Donald Trump declared a symbolic "Liberation Day," imposing tariffs on most of its trade partners, including China, as high as 145%. Accusing the US of trade bullying, in retaliation, China imposed its own 125% tariffs on American goods. Multinational companies around the world are shaken, especially Apple, one of the largest tech giants, stuck amidst the storm of this geopolitical cyclone.

Barely a month later, Apple CEO Tim Cook made a monumental announcement stating, "A majority of iPhones sold in the US will have India as their country of origin."

President Trump wasn't happy with the statement. By May 15, he expressed his dissatisfaction, saying, "Tim, we are treating you really good, we put up with all the plants you built in China for years. We are not interested in you building in India. India can take care of itself.

By May 23, Trump issued a final ultimatum for Apple, which continues, "If Apple wants to sell its products in the US market, it should start manufacturing in the United States or face tariffs of at least 25%."

But is iPhone "Made in USA" Possible?

Analysts were quick to call out the impracticality of Trump's demand. According to market analyst Wayne Lam, if Apple start producing iPhones domestically in America, its price will cross more than $2000. His statement was, "It's absurd. In the short term, it's not economically feasible." 

To start manufacturing iPhones in the US, Apple not only needs heavy automation investments but also has to invest in high-cost US labour, followed by the expenditure in new infrastructure required to set up a manufacturing plant in America.

According to Matthew Moore, former Apple design executive, there is a subtle benefit to domestic production--like it could reduce environmental costs linked to shipping, but still, the benefits are small compared to the plan's execution.

What is India Offering That the US Isn't?

According to Global Trade and Research Initiative (GTRI), an iPhone that costs $30-$40 in labour in India would cost nearly $400 in the U.S. That's a $300+ difference per device-- making "Made in USA" iPhones not just impractical, but unaffordable.

While the West wrangled over trade wars and tariffs, India silently built the foundation of something big — a new high-tech manufacturing ecosystem.

With a young engineering workforce, competitive labour costs, and proactive government policies like the Production Linked Incentive (PLI) scheme, India became the answer to Apple’s crisis.

The PLI scheme, offering 4–6% incentives on incremental sales, has already fueled $10 billion worth of iPhone exports in FY 2024–25. This scheme isn’t just about cash — it brings training, global exposure, and world-class infrastructure to India’s MSMEs (Micro, Small, and Medium Enterprises).

The Rise of Indian Tech Suppliers

The Emergence of Indian Tech Suppliers. Currently, more than 200 Indian MSMEs are involved in Apple’s worldwide supply chain. Some of them include:

Tata Electronics, where iPhone casings are manufactured, and are shipped to China.

Motherson Group, which was recently put under Apple’s suppliers of structural components.

Jabil, which operates in Pune, produces components for AirPods. Aequs, which operates in Hubballi, India, assembles mechanical modules for MacBooks.

Other producers include Foxlink, Sunwoda, Salcomp, which produces batteries, power coils, and charging accessories, all of which are produced. However, rather than manufacturers, each of these firms is also contributing to the development of a new India, advancing one component at a time.

A Broader Strategic Play

Apple’s strategic backstep all the way to India was not about tariffs or the U.S. market. Apple intends to conquer major global markets as market demands change:

Middle East: a significantly new consumer base. India’s ports offer quick-picked iPhones because of its geographical advantages compared to China.

Europe & Africa: Can benefit from India’s tariff-free ”economic corridors.”

Domestic Market: Apple now has its sights on Tier II and even Tier III towns of the Indian market, and the local plant makes the positioning much more lucrative. India has become the country with the second-largest smartphone market. Maybe manufacturing in India might reduce the selling price of the iPhone, making it accessible to the masses of the country.

The Beginning of India's High-Tech Future

Apple's move to India isn't simply a reaction to Trump's taxes. It's a sneak peek at the future of worldwide tech production. By welcoming India, Apple scores a partner that's budget-friendly, nicely situated, and has government backing for making products. For India, it's the start of a revolution—local companies step onto the global stage, skill learning speeds up, and centres for creative ideas spread all over the country. As one trade battle roars on, another country quietly takes the reins.