NEW DELHI– Apple’s decision to manufacture its entire iPhone 17 lineup in India is set to strengthen supply chain efficiency, reduce tax leakage, and bolster the country’s standing as a premium device manufacturing hub, according to a new report by Grant Thornton Bharat.
Industry experts said the move, part of Apple’s deepening commitment to the ‘Make in India’ initiative, will create significant employment opportunities, enhance exports, and further position India as a global high-tech manufacturing powerhouse.
By producing iPhones locally through partners Foxconn and Tata Electronics in Tamil Nadu and Karnataka, Apple avoids the 20 percent Basic Customs Duty imposed on fully assembled imports. The shift also shields the company from possible U.S. tariff escalations.
“Local assembly not only addresses customs duties but also insulates Apple from trade-related uncertainties,” said Krishan Arora, Partner – Tax Planning & Optimisation at Grant Thornton Bharat.
The company will also benefit from India’s Production Linked Incentive (PLI) scheme, which provides 4–6 percent cash incentives on incremental sales of domestically manufactured phones over five years. However, analysts cautioned that the shift may not immediately reduce retail prices for Indian consumers.
Apple’s contract manufacturers exported more than $10 billion worth of iPhones in FY 2024–25. In the first half of 2025 alone, exports surged 53 percent year-on-year to 23.9 million units. Nearly 78 percent of iPhones assembled in India were shipped to the U.S., compared to 53 percent during the same period last year.
Both Tamil Nadu and Karnataka have offered aggressive incentives to support the expansion. Tamil Nadu extended capital subsidies, fast-tracked environmental clearances, and built dedicated electronics parks, while Karnataka offered concessional land, power tariff rebates, and skill development grants.
The expanded manufacturing footprint signals Apple’s intent to not just diversify its supply chain but also deepen its role in India’s growing electronics ecosystem. (Source: IANS)
