Apple Looks to India as Strategic Base to Offset U.S. Tariffs on China

As global trade dynamics continue to shift, Apple is reportedly accelerating its efforts to make India a key export hub for iPhones. This strategic pivot comes in response to the U.S. government’s imposition of steep tariffs on Chinese-made goods, including electronics — a development that could impact billions in Apple’s annual revenue if not mitigated.

According to supply chain analysts and trade insiders, Apple is increasing the volume of iPhones manufactured in India through its partners, notably Foxconn and Wistron, to reroute some of its U.S.-bound shipments. By diversifying production away from China, Apple hopes to navigate around tariff burdens, which recently surged under a renewed protectionist push by the Trump administration.

The timing is crucial. Apple has already been working with the Indian government through Production-Linked Incentive (PLI) schemes that offer benefits for local manufacturing and export. By increasing India’s share in its global supply chain, Apple not only benefits from tariff relief but also gains leverage in a growing market of over a billion potential customers.

This shift reflects a larger trend among global tech firms adopting the “China-plus-one” strategy, where companies reduce their dependence on Chinese manufacturing by expanding to alternate markets like India, Vietnam, and Mexico.

Experts believe that this transition could:

• Boost India’s electronics exports
• Create thousands of local jobs
• Strengthen India’s role in the global smartphone supply chain

While full substitution of China’s production capacity remains unlikely in the short term, Apple’s decision signals growing confidence in India’s manufacturing maturity and policy support.