Apple's India Manufacturing: Navigating Labour Standards, Governance, and the 'Make in India' Promise
A deep dive into the opportunities and challenges as Apple expands its production footprint in India, examining recent incidents, regulatory oversight, and the implications for industrial policy.
Main Explanatory
What is driving Apple's manufacturing expansion in India?
Apple's manufacturing expansion in India is primarily driven by a strategic imperative to diversify its global supply chain and the attractive policy environment offered by the Indian government. Geopolitical tensions, particularly between the United States and China, coupled with supply chain disruptions experienced during the COVID-19 pandemic, prompted Apple to reduce its reliance on China. India has emerged as a key alternative, with its large domestic market and a concerted government push to boost local manufacturing (Source: Indian Express, Nov 10, 2026).
The Indian government's Production Linked Incentive (PLI) scheme, launched in 2020, has been instrumental in attracting major electronics manufacturers. This scheme offers financial incentives, typically 4-6% on incremental sales of goods manufactured in India, over a period of five years subsequent to the base year (Source: Ministry of Electronics and Information Technology). This policy has successfully drawn global players, leading to a substantial increase in domestic production. India now accounts for approximately 25% of global iPhone production, a significant jump from negligible levels just a few years ago, and is increasingly handling newer and more sophisticated models (Source: Indian Express, Nov 10, 2026).
Key manufacturing partners for Apple in India include Taiwan's Foxconn and the Tata Group. The Tata Group has rapidly expanded its footprint, accounting for around 40% of domestic iPhone assembly. This growth was bolstered by its acquisition of Wistron's Indian operations in 2023 and subsequently taking control of Pegatron's Indian iPhone manufacturing business (Source: Indian Express, Nov 10, 2026). Tata's facility in Hosur, Tamil Nadu, is particularly significant as it manufactures precision-engineered metal casings and back panels, indicating a move towards deeper local value addition beyond mere assembly of finished devices.
What are the recent challenges faced by Apple's Indian manufacturing partners?
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