Foxconn, the world’s top iPhone assembler, has started building the next-generation iPhone 17 at its brand new Bengaluru plant—adding to its existing output from Chennai. The Bengaluru facility, built with an investment of ₹25,000 crore, is one of Foxconn’s largest outside China and could soon produce 20 million smartphones a year. This expansion isn’t just about new phones: it signals a deeper shift in how global tech giants see India.
Why Are Foxconn and Apple Betting So Big on India?
- Foxconn, a key Apple supplier, now runs two major factories in the country. It’s planning to boost iPhone production to possibly 25–30 million units this year, and has acquired sprawling land near Bengaluru airport for future growth. Fresh investments—like a $1.5 billion stake in its Indian ventures—show long-term confidence in India’s role as a manufacturing powerhouse.
- Apple, meanwhile, is accelerating efforts to move its supply chain beyond China. For the first time, most iPhones sold in the US are being made here. In just the first half of 2025, iPhone production in India jumped by over 50%, with exports reaching $22.56 billion. The US accounts for nearly 80% of India’s iPhone exports, and Apple aims to produce up to 60 million iPhones in India this year alone.
Supporting Moves from the Indian Government
India’s electronics boom is supported by smart government policies such as:
- Production Linked Incentive (PLI) Scheme: This program rewards companies for expanding domestic output in electronics. It’s helped giants like Foxconn grow faster, while also attracting new players to set up shop in India.
- Electronics Component Manufacturing Scheme (ECMS): Launched in April 2025, ECMS promises ₹22,919 crore in incentives to boost production of key electronic parts. Its goal: to deepen India’s supply chain and help more local companies emerge as global players.
- Other ongoing schemes include “SPECS” for making components and semiconductors, plus cluster development initiatives that make setting up new factories easier.
What Does This Mean for India?
Local manufacturing by Foxconn and Apple brings:
- More jobs and training for Indian workers, both high-tech and entry-level
- A thriving supply chain, as component makers and logistics providers grow
- Better deals for Indian consumers—locally made devices can cost less and arrive faster
- Global recognition, with India becoming a serious alternative to China for electronics
Impact of Trump’s Tariff
The impact of the Trump administration’s tariffs has played a significant role in shaping India’s electronics manufacturing landscape. With tariffs on imports to the U.S. reaching as high as 50% for several electronics categories, companies like Apple, Foxconn, and Samsung have accelerated their local production to avoid these costs and maintain competitiveness.
While iPhones exported from India currently enjoy tariff exemptions, other electronics face challenges that are pushing manufacturers to diversify export markets and strengthen domestic supply chains. Supported by government incentives and the need to reduce reliance on China, these tariffs have become a catalyst for boosting India’s “Make in India” initiative, driving more investments, innovation, and global confidence in the country’s manufacturing ecosystem.
Challenges Ahead
Scaling up so quickly isn’t simple. There are still bottlenecks in infrastructure, skilled labor, and policy consistency. Both Foxconn and Apple have had to adjust to initial hiccups—like sourcing new engineers when others returned home. However, with continued government support and strategic investments, India’s electronics story is just beginning.
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