Apple has taken a big step in its global manufacturing strategy. The company is now focusing more on India as a key production base. According to industry sources, the Tata Group has officially started producing iPhones at its newly acquired factory in India. Meanwhile, Foxconn, Apple’s biggest manufacturing partner, is also expanding its operations in the country. This change marks a major shift in Apple’s global supply chain, as the tech giant tries to reduce its dependence on China and invest more in India, which is now seen as a growing hub for electronics manufacturing.
The Tata Group, one of India’s largest and most respected business houses, recently completed the takeover of a factory from Wistron, a Taiwanese company that used to assemble iPhones in India. This plant, located in Karnataka, is now operated by Tata and is fully functional. The factory has already begun assembling models from the iPhone 15 series, and there are reports that newer models will also be manufactured soon. This development is historic because it marks the first time an Indian company has assembled iPhones entirely on its own. It’s a big win not only for Tata but also for India’s larger dream of becoming a global manufacturing powerhouse.
Foxconn is also moving quickly to increase its manufacturing presence in India. The company already has production units in Tamil Nadu and Andhra Pradesh. Now, Foxconn is investing more than $1.5 billion to build a new iPhone production facility in Karnataka, near Bengaluru’s Devanahalli area. This factory will likely begin production in the coming months and is expected to create thousands of jobs. Foxconn’s move shows strong confidence in India’s future and highlights how global suppliers are responding to Apple’s changing manufacturing strategy.
There are many reasons why Apple is shifting its manufacturing base to India. One of the most important reasons is to reduce dependence on China. For years, China has been Apple’s main production center. However, rising labor costs, strict COVID-19 lockdowns, and political tensions between the United States and China have made it risky for Apple to rely only on Chinese factories. By expanding in India, Apple can avoid future disruptions and manage risks better.
Another major reason is the growth of India’s smartphone market. India is now the second-largest smartphone market in the world and continues to grow rapidly. Apple wants to increase its market share here, but high import duties on foreign-made phones have made iPhones very expensive in India. By producing iPhones locally, Apple can avoid these duties and offer its products at more competitive prices, making them more accessible to Indian consumers.
The Indian government has also played a big role in attracting companies like Apple, Tata, and Foxconn. Through schemes like the Production-Linked Incentive (PLI) program, the government offers financial benefits to companies that manufacture in India. This makes India a more attractive destination for global tech firms looking to set up factories outside China. Tata and Foxconn have both registered under this scheme, and their investments show how government support is helping drive industrial growth.
Tata’s entry into the iPhone supply chain is particularly important. It gives Apple a reliable, long-term Indian partner with a strong track record in sectors like automobiles, steel, and information technology. Tata is not only assembling iPhones but may also start making key components like batteries, camera parts, and casings in the future. This deeper involvement will help Apple build a more self-sufficient and flexible supply chain in India.
Apple is also strengthening its presence in the Indian market in other ways. In 2023, the company opened its first two Apple retail stores in India—one in Mumbai and the other in Delhi. Apple CEO Tim Cook personally visited the country to meet with Prime Minister Narendra Modi and Indian business leaders. Apple’s plan is clear: grow production, boost sales, and become a larger part of the Indian economy.
The company’s goals are ambitious. Apple reportedly wants to produce 25% of all its iPhones in India by 2025. To reach that target, it is working closely with Tata, Foxconn, and other suppliers. The company is also encouraging its partners to invest in India, improve production quality, and train workers to handle high-tech assembly tasks. Over time, India could become one of Apple’s biggest production bases outside of China.
It will create thousands of new jobs, especially in southern states like Karnataka and Tamil Nadu. These jobs will include everything from factory workers to engineers and supply chain managers. As more young Indians get trained to work in electronics manufacturing, the country will develop a stronger workforce that is ready for the future.
The rise of local manufacturing will help many Indian companies grow. Apple works with hundreds of suppliers for parts like displays, chipsets, speakers, and packaging. As production increases, more Indian firms will have the chance to join Apple’s supply chain and produce parts locally. This will strengthen India’s entire electronics industry and help reduce imports.
iPhone exports from India are likely to rise. Apple is already shipping some India-made iPhones to Europe and other regions. As more factories come online, these exports will increase, helping India improve its trade balance and attract more foreign investment. India’s image as a reliable global supplier will also grow stronger.
This shift will lead to skill development. Companies like Apple, Tata, and Foxconn are expected to start training programs and workshops to teach new workers the skills needed in electronics manufacturing. These programs will help young Indians get good-paying jobs and build careers in high-tech industries.
However, there are still challenges. One major issue is the shortage of skilled workers. While India has a large workforce, many people lack the technical skills needed for advanced electronics manufacturing. Companies will have to invest in training and development to close this gap. Another challenge is infrastructure. India needs better roads, reliable electricity, and faster logistics systems to support large-scale manufacturing. Though progress is being made, more investment is needed to create a world-class manufacturing environment.
Despite these challenges, Apple’s move to India is likely to encourage other tech giants to follow. Many global companies are watching Apple closely. If its India strategy succeeds, it will prove that the country can handle high-quality production at scale. This could lead to more investments from brands like Samsung, Dell, and Google in the future.
Apple’s shift also affects China. As production moves to India, some Chinese factories may see a drop in orders. This is part of a broader trend where companies are looking to spread their manufacturing across multiple countries to reduce risk. It doesn’t mean Apple is leaving China completely, but the company clearly wants more balance in its supply chain.
Indian customers will benefit too. With more iPhones being made locally, Apple can launch its new products in India faster and at better prices. Currently, Indian consumers often get new iPhones weeks after global launches. Local production may change that. Apple is also expected to open more service centers, support centers, and retail outlets across the country, improving the overall customer experience.
The start of iPhone production at Tata’s factory and Foxconn’s upcoming expansion mark a major turning point for both Apple and India. Apple is building a new foundation for its global supply chain, and India is taking big steps toward becoming a global manufacturing leader. This partnership is creating jobs, boosting exports, developing skills, and showing the world that India is ready for the future of high-tech manufacturing. As Apple continues to grow in India, the world will see more “Made in India” iPhones in the years to come.
