Apple will fully manufacture the iPhone 17 in India through Foxconn and Tata Electronics, boosting exports and supply chain resilience.
Apple will manufacture its entire iPhone 17 range in India, marking a major milestone in the country’s ambition to become a global electronics manufacturing powerhouse. The devices will be assembled in Tamil Nadu and Karnataka through partners Foxconn and Tata Electronics.
By shifting production, Apple avoids the 20 per cent Basic Customs Duty otherwise levied on imported, fully assembled iPhones. The move also improves supply chain efficiency and shields the company from potential tariff escalations in the United States. Crucially, it unlocks benefits under India’s Production Linked Incentive (PLI) scheme, which offers 4–6 per cent cash incentives on incremental sales of devices manufactured locally.
The impact is already visible. Apple’s contract manufacturers crossed $10 billion in iPhone exports in FY 2024–25, with shipments surging 53 per cent year-on-year in the first half of 2025 to 23.9 million units. Nearly 78 per cent of iPhones assembled in India were shipped to the US during the same period, up sharply from 53 per cent a year earlier.
“The ‘Make in India’ initiative, bolstered by Apple’s expanded footprint, is expected to generate substantial employment, boost exports, and enhance India’s credibility as a high-tech manufacturing powerhouse,” said Grant Thornton Bharat.
Krishan Arora, Partner – Tax Planning & Optimisation at Grant Thornton Bharat, noted, “Local assembly also insulates the company from potential tariff escalations in the US.” He added that the PLI scheme incentives have further strengthened Apple’s case, though prices for Indian consumers may not drop immediately.
Both Tamil Nadu and Karnataka have extended strong policy support, including subsidies, concessional land, and skill development grants, further reinforcing India’s attractiveness as an electronics manufacturing base.
Meanwhile, US tariff hikes on Indian exports—some as high as 50 per cent—underline the importance of this localised strategy, even though smartphones remain exempt for now.
