Apple has begun manufacturing the iPhone 17 in India for the first time, partnering with Foxconn and Tata Electronics. This move strengthens India’s role as a premium smartphone hub, boosts exports, creates jobs, and supports the ‘Make in India’ initiative, while also giving Apple tariff benefits and incentives under the PLI scheme.
Representational Image. File Pic
Taiwan’s Hon Hai Precision Industry Co. (Foxconn), the largest contract manufacturer for iPhones, has debuted in India by manufacturing the all-new iPhone 17 in India along with Tata Electronics. This is the first time that any generation of the iPhone will be manufactured in India.
US tech giant Apple’s decision to manufacture its entire iPhone 17 range in India will also help to enhance its supply chain efficiency, reduce tax leakage, and make a stronger case for India as a premium device manufacturing hub.
The 'Make in India' initiative, bolstered by Apple’s expanded footprint, is expected to generate substantial employment, boost exports, and enhance India’s credibility by manufacturing the recently launched iPhone 17 series in India. According to Grant Thornton Bharat, India is one of the most high-tech manufacturing powerhouses across the globe that can give the global economy a phenomenal boost.
By shifting production to Tamil Nadu and Karnataka through partners Foxconn and Tata Electronics, Apple aims to avoid the 20 per cent Basic Customs Duty, which otherwise would have been levied on the fully assembled devices, as per news agency IANS.
Krishan Arora, Partner – Tax Planning and Optimisation of Grant Thornton Bharat, while commenting on the tariff escalations, said that “the local assembly part of the business also insulates the company from potential tariff escalations in the US,” as cited by news agency IANS.
After the US imposed higher tariffs on India, some of the country's exports now face duties as high as 50 per cent, though smartphones remain exempt for now.
The move to manufacture the latest-gen Apple iPhone in India also unlocked further gains under India’s Production Linked Incentive (PLI) scheme. The scheme offers 4 to 6 per cent cash incentives on incremental phone sales manufactured in India over five years, which could be a great benefit for Apple as far as their production cost is concerned. Arora further stated, “The company’s decision may not immediately lower prices for consumers in India.”
While putting his comments on exports made by Apple in 2024-25, he added, “This has helped Apple’s contract manufacturers surpass $10 billion in iPhone exports in FY 2024–25, with exports surging 53 per cent year-on-year in H1 2025 to reach 23.9 million units,” as cited by news agency IANS.
In the first half of 2025, as much as 78 per cent of iPhones assembled in India were shipped to the US, up from 53 per cent a year earlier.
To make sure that India becomes a hub for global smartphone manufacturing, the Tamil Nadu government has also extended capital subsidies, fast-tracked environmental clearances, and dedicated electronics parks. Whereas, the Karnataka government has offered land at concessional rates, power tariff rebates, and skill development grants.
(With inputs from IANS)
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