Apple and Google set to deepen India manufacturing push as China production shifts

NEW DELHI: Apple could be ready to put more than iPhones on the India assembly line. The government expects the company to broaden its manufacturing footprint in the country, while Google could shift a significant share of its export-focused production from China to India, electronics and IT minister Ashwini Vaishnaw said in response to Moneycontrol queries.

Vaishnaw said the government is working with Apple to expand its manufacturing operations in India beyond smartphones. He also indicated that India is expected to receive a significant portion of Google’s production intended for overseas markets.

The comments come as India looks to turn its success in mobile phone assembly into a broader electronics manufacturing and export story.

Apple began assembling iPhones in India in 2017 and has steadily expanded its local production through manufacturing partners including Foxconn and Tata Group. According to Counterpoint Research estimates cited by Reuters, India could account for around 26 per cent of global iPhone production in 2026.

Apple’s India operations have also moved beyond final assembly, with the company developing component manufacturing capabilities locally. A sizeable share of the iPhones produced at Foxconn’s Indian facilities is exported, particularly to the US.

Google has also been building its manufacturing base in the country. The company started producing Pixel smartphones in India in 2023 with the Pixel 8 and has since expanded production through partners including Dixon Technologies.

The company is increasingly using India as a manufacturing base for devices destined for overseas markets. Reports have suggested that Google could stop manufacturing Pixel smartphones, watches and wireless earbuds in China from 2027, with production shifting to India and Vietnam.

Google has not publicly confirmed the reported China-to-India manufacturing shift.

If realised, the move would further strengthen India’s position in the global supply chains of major technology companies, particularly as manufacturers seek to diversify production beyond China.

Vaishnaw’s comments come as the government implements the Mobile Phone Manufacturing Scheme, approved by the Cabinet in July and subsequently notified. The programme has an outlay of Rs 62,500 crore and will run from FY27 to FY31.

The scheme provides incentives ranging from 2.25 per cent to 5 per cent on eligible mobile phone sales. Manufacturers can also receive an additional incentive of up to 1.5 per cent for sourcing specified components and sub-assemblies domestically.

Unlike the earlier production-linked incentive programme, which was primarily focused on scaling up manufacturing, the new scheme puts greater emphasis on components and domestic value addition.

That shift is significant as India seeks to capture a larger portion of the electronics value chain rather than remaining primarily an assembly destination.

India has already made considerable progress on domestic mobile production. Government data shows that 99.2 per cent of mobile phones used in the country are now manufactured domestically.

Domestic value addition in mobile manufacturing stood at 23 per cent in FY24, while smartphones emerged as India’s largest individual export product category in FY26.

The government’s next challenge is therefore less about making phones in India and more about making more of the phone, and potentially other consumer electronics, in India.

Apple’s potential expansion and Google’s expected increase in export-oriented production could provide a significant boost to that ambition, positioning India as a manufacturing and export hub for global technology companies rather than simply a large consumer market.