Apple and Google set to deepen manufacturing footprint in India

MUMBAI: India’s manufacturing story is getting more global, one device at a time. Apple could expand its manufacturing operations in the country beyond iPhones, while Google is expected to shift a significant share of its export-oriented production from China to India, Electronics and IT Minister Ashwini Vaishnaw said in response to Moneycontrol queries on August 21.

Vaishnaw said the government is working with Apple to broaden its manufacturing footprint in India. In Google’s case, he said the country is expected to receive a significant share of the company’s production intended for overseas markets.

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

The Apple story is also moving beyond final assembly. The company has developed component manufacturing capabilities in India, while a significant portion of iPhones produced at Foxconn’s Indian facilities is exported to the US.

Google, meanwhile, started manufacturing Pixel smartphones in India in 2023, beginning with the Pixel 8. It works with manufacturing partners including Dixon Technologies and has been increasing production in the country, including for export markets.

Reports have suggested that Google could stop manufacturing Pixel smartphones, watches and wireless earbuds in China from 2027, with production moving to India and Vietnam. Google has not publicly confirmed that reported plan.

The government’s push comes alongside a fresh attempt to deepen India’s mobile manufacturing ecosystem. The Mobile Phone Manufacturing Scheme, approved by the Cabinet in July and subsequently notified, 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, along with an additional incentive of up to 1.5 per cent for domestic sourcing of specified components and sub-assemblies.

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

The shift is already visible in India’s mobile manufacturing numbers. Government data shows that 99.2 per cent of mobile phones used in India are now manufactured domestically, while domestic value addition in mobile manufacturing reached 23 per cent in FY24.

Smartphones also emerged as India’s largest individual export product category in FY26, underlining how the country is moving from being a market for global technology brands to an increasingly important production and export base.

If Apple’s manufacturing expansion and Google’s reported China-to-India shift materialise, India’s mobile manufacturing story could be entering its next phase — moving beyond simply making more phones to making more of the technology ecosystem behind them.