Tata & Foxconn: The Made-in-India iPhone race that’s reshaping Apple’s global supply chain

India is rapidly becoming a major iPhone manufacturing base, with Tata Electronics and Foxconn leading the charge as Apple diversifies its supply chain beyond China. In May 2025, iPhones worth over Rs. 15,000 crore (US$ 1.75 billion) were produced in India, nearly matching the country's total domestic iPhone consumption value of Rs. 84,000 crore (US$ 9.82 billion) for all of 2024 through local production alone. This surge has been driven by the Production Linked Incentive (PLI) scheme, under which Tata received Rs. 2,068 crore (US$ 241.81 million) and Foxconn Rs. 2,807 crore (US$ 328.22 million) between FY23 and FY25. Foxconn, holding a 65% share of iPhone production in 2024, recently committed Rs. 12,828 crore (US$ 1.5 billion) in fresh investment and began evaluating production at its Rs. 22,235 crore (US$ 2.6 billion) facility near Bengaluru. Tata, accounting for 35% of output in 2025, has expanded its footprint with new facilities in Tamil Nadu and Karnataka and entered after-sales services.
India assembled iPhones worth Rs. 1,88,144 crore (US$ 22 billion) in the 12 months ending March 2025, up nearly 60% YoY. Of this, Rs. 1,48,804 crore (US$ 17.4 billion) worth was exported. Apple aims to shift the bulk of United States (US)-bound iPhone production to India by the end of 2026. Though China still produces over 75% of global iPhones, India now contributes about 18% and is expected to rise to 20% in 2025. Despite geopolitical uncertainties and trade concerns—such as potential tariff threats from the US—India's cost advantage remains compelling. Manufacturing in India costs around Rs. 2,567.12 (US$ 30) per unit, compared to nearly Rs. 33,372.57 (US$ 390) in the US, preserving India's competitiveness. The efforts by Tata and Foxconn are reshaping Apple's global production strategy, positioning India not as a backup but as a central pillar of its future supply chain.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.