Apple manufacturing in India remains a focus for the tech giant, as the Indian government plays down concerns voiced by US President Donald Trump regarding its expanding operations. Sources within the government have informed CNBC-TV18 that Apple has “assured the Indian government” of its ongoing commitment to use India as a crucial production hub.
“Apple’s investment plans in India are unchanged,” the sources added, indicating that the company is still on track despite Trump’s remarks regarding its strategy focused on India.
During his visit to Doha on a Gulf tour, US President Donald Trump allegedly told Apple CEO Tim Cook that the US is “not interested” in Apple establishing its manufacturing base in India, emphasising that “they can handle themselves.” This statement reflects Trump’s ongoing initiative to encourage US companies to prioritise domestic manufacturing over outsourcing to countries like India and China.
Contrary to these concerns, Apple seems devoted to its expansion in India. The company achieved a production value of $22 billion in the country for FY2025 and is planning to establish India as its central hub for US-bound iPhones by the end of 2026. While production costs in India are higher, Apple is making a strategic shift to this market to lessen its reliance on China and handle the current geopolitical challenges more effectively.
In an interesting turn, Trump remarked in Doha that “India offered the US a deal, essentially zero tariffs.” The Indian government has not yet responded or clarified whether this proposed offer encompasses all categories of American exports or is restricted to specific sectors.
Apple’s ongoing investment in India aligns with its broader strategy to diversify manufacturing away from China. A recent report from The Information indicated that Apple intends to relocate up to 50% of its iPhone production out of China, particularly in light of the looming tariff threats from Trump.
India presents itself as a robust alternative, thanks to government backing and enhanced local partnerships. Apple’s expanding collaboration with the Tata Group has facilitated smoother regulatory processes and encouraged additional investment.
In March, Apple heavily relied on its Indian production facilities, reportedly dispatching nearly $2 billion worth of iPhones to the US, marking an all-time high. This surge in exports coincided with a potential tariff threat from President Trump, underscoring India’s growing importance in Apple’s global supply chain.