In response to former U.S. President Donald Trump’s aggressive tariffpolicies on Chinese and Vietnamese imports, global tech giants Apple andSamsung are steadily shifting their manufacturing base to India. The move isseen as a strategic pivot to minimize reliance on China and maintain a competitiveedge in the American market.
The “Make in India” initiative is gaining momentum as these smartphonemanufacturers adapt their supply chains to bypass mounting trade barriers.Apple has already started exporting iPhones to the U.S. from its Indian factories,signalling a significant reduction in its China-dependent exports. “India’s factories will be increasingly used to ship only to the US. Demandin other markets such as Europe, Latin America and even Asia will now becatered to from the China factories. In a way, this will be a significantleapfrogging for iPhone production in India and may lead to major expansion inthe country if Apple decides to stick to the formula going forward,” TOIsaid, quoting a top industry official.
Trump’s tariff structure has placed a heavy burden on tech imports: 26% onIndian goods, a sharp 54% on Chinese exports—with a recent increase to 34%—and46% on Vietnamese products. To navigate this complex trade environment, Applehas leaned on its Indian manufacturing units operated by Taiwanese Foxconn andthe Tata Group. The company has also acquired assets from Wistron and Pegatron,further strengthening its local capabilities.
An insider noted, “If Apple does not go for developing all-new productionzones in locations, such as the UAE and Saudi Arabia, or in Brazil — all ofwhich have US tariffs of 10% — then there will be a significant expansion ofcapacity in India.”
Such expansion could lead to major investments from both Foxconn and Tata,potentially pushing iPhone exports from India beyond the projected $10 billionthis fiscal year. However, the future of this production shift will dependheavily on upcoming U.S. trade negotiations with other nations. “Samsung will find it better to ship from India at a duty of 26% thanexport from Vietnam. While this will be a temporary measure till the Vietnamesegovernment negotiates with the US, it adds a lot of importance to Make in India,”the official told TOI.
