India’s Rise as Apple’s Manufacturing Hub: Key Factors Behind the Shift

Apple has exported over $12 billion worth of iPhones from India in 2024, indicating a significant shift in its manufacturing strategy. While some view this move as a strategic choice, sources suggest that external pressures from the U.S. government, particularly threats of tariffs from the Trump administration, played a crucial role in prompting Apple to relocate production. Critics argue that this push for domestic manufacturing overlooks key factors influencing manufacturing decisions.

India has become an attractive option for Apple due to lower labor costs, favorable regulations, reliable infrastructure, and a skilled workforce. This trend extends beyond Apple, with major suppliers like Foxconn hiring extensively in India and companies like Wistron and Pegatron expanding their operations. Tata’s acquisition of an iPhone assembly line further cements India’s role in the global supply chain.

Experts believe that while political pressures exist, Apple’s investment in Indian manufacturing is also driven by long-term strategic goals. The company plans to significantly increase its manufacturing capacity in India, with projections suggesting that up to 65% of iPhones could be produced there by fall 2025, reinforcing the idea that this shift is both a response to external pressures and a strategic move.