Apple Eyes India for Manufacturing Growth, but US-China Tensions Loom

Apple is increasingly shifting its manufacturing operations to India, boosting the country’s status as a global electronics hub. This move aligns with India’s ambitions to become a key player in global supply chains, especially in the smartphone and tech manufacturing sectors. With production facilities already set up in Tamil Nadu and Karnataka, Apple’s suppliers like Foxconn and Pegatron are ramping up investment to scale operations.

India offers several advantages—competitive labour costs, supportive government incentives under the PLI (Production-Linked Incentive) scheme, and a large domestic market. Apple’s shift is also partly driven by rising tensions between the United States and China, which have encouraged American companies to reduce dependency on Chinese manufacturing.

However, a potential US-China trade deal could shift the dynamic once again. If relations between Washington and Beijing improve, Apple may find renewed reasons to invest more in China, where its supply chain is already well-established and efficient. This would slow down India’s growth in the sector and weaken the momentum built in recent years.

Experts believe that while India is making progress, it still faces infrastructure challenges, logistical hurdles, and skill gaps that China has long overcome. Therefore, while Apple’s pivot to India is promising, it may not be permanent unless India continues to improve its business ecosystem.

The future of Apple’s manufacturing footprint will depend not just on economics but on geopolitics. India has a window of opportunity—but whether it can secure its place as a global manufacturing giant remains to be seen.