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Apple Reaffirms Commitment to India Amid Trump’s Call for Domestic Production Shift

By Manbir Sandhu , 17 May 2025
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In the wake of recent remarks by former U.S. President Donald Trump urging Apple to relocate iPhone production to the United States, Apple has reassured Indian authorities that its long-term manufacturing and investment strategy in India remains firmly on track. Indian officials reached out to the tech giant following Trump’s comments at a business event in Doha. Despite political pressure in the U.S., Apple emphasized that India will continue to play a crucial role in its global supply chain. With India contributing around 15% to Apple’s global iPhone output and exports exceeding Rs. 1.5 lakh crore in FY25, the company’s operations in the region are expanding steadily.

Apple Reassures India of Unwavering Manufacturing Strategy

Apple has privately confirmed to senior Indian government officials that it has no intention of revising its current manufacturing plans in the country. This assurance follows former U.S. President Donald Trump’s statement that he advised Apple CEO Tim Cook to scale back manufacturing in India and boost output within the United States.

According to sources familiar with the exchange, Apple reiterated its position that India remains integral to its global operations. The tech giant has not released an official public statement, but Indian officials have relayed that the company plans to continue expanding its presence in the country, both in terms of production volume and investment.

India’s Critical Role in Apple’s Global Supply Chain

India has emerged as a pivotal node in Apple’s supply chain strategy. In FY25 alone, iPhones valued at over Rs. 1.5 lakh crore were exported from India—primarily to the United States—underscoring the country’s growing importance in Apple’s global logistics and production infrastructure.

At present, India accounts for approximately 15% of the company’s global iPhone output. The past year has witnessed a significant uptick in production, with Apple increasing local iPhone assembly by 60% year-on-year. This growth trajectory reflects both the company’s confidence in India’s manufacturing capabilities and the broader structural shift in global electronics supply chains away from China.

Foxconn and Local Expansion: Scaling Production Across Segments

Apple’s primary manufacturing partner in India, Foxconn, has been instrumental in scaling up operations. Beyond iPhones, Apple has also begun ramping up the domestic assembly of AirPods at Foxconn’s Telangana facility. This move indicates Apple’s long-term strategy to broaden its product assembly base in India, signaling diversification in both product lines and manufacturing geographies within the country.

The trend aligns with broader government initiatives, including the Production-Linked Incentive (PLI) scheme, which aims to attract high-value manufacturing and position India as a preferred alternative to China in global electronics production.

India’s Manufacturing Edge: A Long-Term Advantage

Government officials noted that India’s increasing competitiveness in electronics manufacturing—driven by supportive policy frameworks, skilled labor, and a strengthening industrial ecosystem—continues to attract multinationals like Apple. With rising geopolitical uncertainties and ongoing efforts by global corporations to de-risk their supply chains, India is becoming an increasingly attractive destination for strategic manufacturing investments.

This sustained momentum is expected to deepen India’s integration into the high-tech global manufacturing map, potentially setting the stage for more sophisticated and higher-value electronics production in the coming years.

Conclusion

Despite political headwinds and public pressure from influential figures like Donald Trump, Apple’s reaffirmation of its India manufacturing strategy demonstrates the resilience and strategic value of its operations in the subcontinent. As Apple continues to expand its footprint, India’s role as a major hub for global electronics manufacturing only grows stronger, positioning the country at the heart of the next chapter in global supply chain realignment.

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