The Founders News
Business News

India’s Electronics Sector Accelerates Amid Global Trade ShiftsIndia’s Electronics Manufacturing Boom: Apple, HP Shift Production Amid Global Trade RealignmentIndia’s Electronics Sector Accelerates Amid Global Trade Shifts

India’s electronics manufacturing industry is witnessing rapid growth as global tech giants like Apple and HP move production from China to India. This shift is driven by escalating U.S.-China trade tensions and India’s aggressive incentive schemes.


Apple to Shift Entire iPhone Production for U.S. Market to India

Apple’s manufacturing expansion in India is a major milestone in global supply chain diversification. By 2026, Apple plans to assemble all iPhones destined for the U.S. market in India, moving away from its reliance on Chinese factories. The move is in response to new U.S. tariffs on Chinese imports, with Apple seeking to avoid a 20% duty.

Manufacturing partners such as Foxconn, Pegatron, and Tata Electronics are scaling up operations in Tamil Nadu and Karnataka to support the transition. This shift will likely lead to thousands of new jobs and a significant increase in exports.


HP Expands India Manufacturing to Reduce China Dependence

Following Apple’s footsteps, HP is doubling down on India as a key electronics production hub. The company plans to expand its facilities, highlighting India’s growing importance in the global hardware ecosystem. This move is also part of a broader strategy to protect supply chains from geopolitical disruptions.


PLI Scheme Powers India’s Electronics Sector Growth

The Production-Linked Incentive (PLI) scheme for electronics manufacturing is a game-changer. Introduced by the Indian government to boost domestic production and exports, this scheme offers substantial incentives to companies that meet output targets.

Apple alone assembled iPhones worth $22 billion in India in FY2024–25, with 60% year-on-year growth. Local electronics firms like Dixon Technologies and Kaynes Technologies are also seeing strong growth under the scheme, as demand rises for India-based manufacturing partners.


Challenges for India’s Electronics Industry

Despite the momentum, India must address key issues to sustain this growth. These include:

  • Weak logistics infrastructure
  • Regulatory delays and inconsistent policies
  • High import dependency on components

Although India is gaining traction, countries like Vietnam still lead in terms of ease of doing business and streamlined regulations for foreign manufacturers.


Future Outlook: Can India Become the World’s Electronics Factory?

India is emerging as a serious alternative to China in electronics manufacturing. With global demand rising, India has the potential to become the next big electronics hub—provided it strengthens infrastructure, simplifies regulations, and builds local component ecosystems.

Related posts

Kalyan Jewellers Q2 Results: Net Profit Falls to ₹130 Crore Amid One-Time Loss, Revenue Sees 37% Growth

The Founders News

HUL Ice Cream Business Demerger: New Subsidiary Incorporated

The Founders News

Hindenburg Research, Known for Targeting Adani Group, to Be Disbanded

The Founders News

From ‘Coolcations’ to Wellness Retreats: Top Luxury Travel Trends for 2025

The Founders News

Supreme Court Orders Liquidation of Jet Airways, Citing “No Choice” Amid Ownership Dispute

The Founders News

Adani Group Payment Lags Behind Peers

The Founders News