Apple To Raise India's iPhone Production Share To 30-35% Within Five Years

Apple is expected to increase India's share of global iPhone production from about 25 percent currently to 30-35 percent over the next five years. The official said Apple is expected to shift about 30-35 percent of its global iPhone production to India from 25 percent currently, in the next five years. The shift could push the annual value of India's iPhone output from roughly $25 billion to $40-45 billion by 2031.

PLI scheme laid the groundwork

Apple became the biggest beneficiary of the Rs. 30,000-crore, five-year Production Linked Incentive (PLI) scheme for mobile phones that was launched in April 2020, and has since become a poster boy for global manufacturing in India. Describing the government's working relationship with the company, the MeitY official told Business Standard that officials remain readily accessible to Apple to resolve any issues that arise. An unnamed Apple vendor characterised the coordination across the Prime Minister's Office and ministries such as Meity, commerce, finance and external affairs as a "whole of government approach to business," the govt official reportedly said.

With the PLI scheme for mobiles having concluded in FY26, the government has stepped in with a fresh five-year incentive package for the sector worth Rs. 62,500 crore, with tax exemptions for contract manufacturers set to remain in effect until March 31, 2041. Industry experts believe the bulk of these benefits will flow to Apple's suppliers rather than the company directly.

Foxconn scouting new Gujarat site

Apple's largest contract manufacturer, Foxconn, is reportedly evaluating a new facility in Gujarat to expand its India footprint. The company is scouting a land parcel of more than 200 acres near Sanand in Ahmedabad district for a proposed technology park and electronics manufacturing facility, and executives have already surveyed the site, according to government sources. A final decision on the location is expected in the coming weeks, with Gujarat competing against other states under consideration.

The proposed Sanand facility would add to Foxconn's existing India presence, which includes a 300-acre iPhone assembly plant near Bengaluru airport in Karnataka. If finalised, the Gujarat project would further cement the state's ambitions to become a hub for electronics and semiconductor manufacturing, building on its existing industrial base and proximity to Ahmedabad's transport infrastructure.

India's manufacturing footprint already expanding

India's iPhone production has grown sharply in recent years. Apple assembled roughly 55 million iPhones in India in 2025, up 53 percent from 36 million units the previous year, taking India's share to around a quarter of Apple's total annual output of 220-230 million iPhones, according to Bloomberg estimates cited by industry reports. The company's India operations now span five major assembly facilities, three run by Tata Group and two by Foxconn, supported by a growing base of roughly 45 component suppliers.

Published on: Monday, August 31, 2026, 03:23 PM IST