Author: Akshay Date: May 26, 2025
🇮🇳 India Steps Up as a Cost-Effective iPhone Manufacturing Hub
India’s potential to become a global electronics manufacturing powerhouse just got a strong endorsement. In a recent statement, NITI Aayog CEO BVR Subrahmanyam emphasized that India is now a cheaper and viable alternative to China when it comes to manufacturing Apple’s iconic iPhones.
This shift is not just symbolic—it represents a strategic pivot for the world’s most valuable tech company and a significant milestone for India’s “Make in India” initiative.
India Beats China on Manufacturing Costs
According to Subrahmanyam, Apple’s iPhone production in India is at least 20% cheaper than in China. That’s a significant cost differential, especially in a market where profit margins are tightly managed and global supply chains are being re-evaluated.
India’s advantage comes from:
- Lower labor costs
- Government incentives and subsidies under the Production Linked Incentive (PLI) scheme
- Rising infrastructure quality in industrial corridors
- A growing ecosystem of component manufacturers and suppliers
Apple’s Deepening Footprint in India
Apple has already made considerable strides in India over the past few years. Manufacturing partners like Foxconn, Pegatron, and Wistron are ramping up operations in states like Tamil Nadu and Karnataka.
The tech giant recently opened its first Apple Stores in Mumbai and Delhi and is looking to make India not just a manufacturing hub but also a key growth market.
Subrahmanyam pointed out that Apple aims to produce iPhones worth ₹1 lakh crore in India this year, of which 70% will be exported, boosting India’s trade balance and industrial growth.
Beyond Apple: A Catalyst for India’s Electronics Ecosystem
While Apple grabs headlines, this shift signals broader change. India is positioning itself as a global destination for high-end electronics manufacturing, competing with the likes of Vietnam and China.
The benefits are manifold:
- Creation of millions of skilled jobs
- Development of ancillary industries like chips, batteries, and displays
- Attraction of foreign direct investment (FDI)
- Strengthening of local supply chains
Subrahmanyam underlined the importance of integrating India into the global value chain and moving beyond just assembly toward design, innovation, and R&D.
Geopolitics and Diversification Fuel the Shift
The global electronics industry is undergoing a geopolitical realignment. Trade tensions between the US and China, along with the aftershocks of the pandemic, have led many companies to diversify their supply chains.
India is increasingly seen as a stable, democratic, and large-scale manufacturing base, offering both cost-efficiency and market access.
This trend is not just about cost but about strategic resilience. By anchoring production in India, Apple can ensure better risk management while also serving the massive Indian market more effectively.
India’s journey from being a software services hub to a hardware manufacturing leader is well underway. With strong policy support, infrastructure improvements, and corporate interest from global giants like Apple, the country is poised to reshape the global tech manufacturing landscape.
NITI Aayog’s statement isn’t just a pat on the back—it’s a call to action to build a sustainable, competitive, and innovation-driven electronics industry in India.