Apple Inc. exported iPhones valued at over 1.5 trillion rupees (US$17.4 billion) from India in the last fiscal year, according to India’s technology minister, Ashwini Vaishnaw.

This announcement underscores Apple’s efforts to diversify its manufacturing operations beyond China.

India’s smartphone exports exceeded 2 trillion rupees (US$23.1 billion) in the fiscal year ending in March 2025. This reflects a 54% increase from the previous year, Vaishnaw said during a briefing in New Delhi.

Apple has increased its production in India, aided by government subsidies and Prime Minister Narendra Modi’s initiative to position the country as a manufacturing hub.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Apple’s manufacturing journey reflects decades of global supply chain evolution

Apple’s current push into India represents a dramatic shift from its manufacturing origins. The company once operated multiple U.S. factories, including a highly automated Fremont, California facility opened in 1983 that aimed to produce a Macintosh every 27 seconds 1.

Despite advanced automation and Steve Jobs’ obsession with factory aesthetics (even dictating machine colors), these domestic operations struggled with efficiency and scale, leading Apple to begin closing U.S. plants by 1985 2.

By 2004, Apple had completely shifted manufacturing overseas, primarily to China, where Foxconn and other partners could rapidly scale production with access to skilled labor that was unavailable in similar concentrations domestically 3.

This history demonstrates why developing India as a manufacturing hub represents such a significant challenge. Apple spent decades building its Chinese manufacturing ecosystem, which explains why 80% of iPhones are still made there despite years of diversification efforts.

2️⃣ India’s smartphone export surge reflects strategic policy success

India’s $17.4 billion in iPhone exports is part of a broader transformation in the country’s electronics manufacturing sector. The nation has evolved from meeting only 25% of domestic smartphone demand in 2014-15 to nearly complete self-sufficiency today 4.

This growth stems directly from India’s Production-Linked Incentive (PLI) scheme, which provides financial incentives for manufacturers, successfully attracting major players like Apple and generating significant job creation 5.

Despite this progress, India still faces stiff competition in global smartphone exports. Vietnam captured 12% of global smartphone exports compared to India’s smaller share, highlighting ongoing challenges in the race to diversify global supply chains 6.

The data reveals that while India has made remarkable progress, its $15.6 billion in total mobile phone exports for FY24 remains below the government’s ambitious target of $110 billion by 2025, showing both achievement and the distance yet to cover 4.

Recent Apple developments