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.
