Apple Bets Big on India, Defying U.S. Reshoring Push

In a bold strategic move, Apple Inc. is rapidly expanding its footprint in India, even as political and economic sentiment in the United States increasingly favors reshoring—bringing manufacturing and supply chains back home. This divergence highlights the tech giant’s commitment to long-term global supply chain diversification, while also signaling India’s rising stature as a manufacturing powerhouse.

Can Apple’s pivot to India redefine the future of global tech manufacturing?

In a world reshaped by geopolitical tensions, Apple’s strategic pivot to India signals a new era of global supply chain innovation beyond the traditional hubs.

The U.S. Reshoring Push: A Brief Context

In recent years, the United States has launched aggressive initiatives to reshore manufacturing, aiming to reduce dependence on foreign supply chains—especially in the wake of trade tensions with China, the COVID-19 pandemic, and rising geopolitical uncertainties. The CHIPS and Science Act, coupled with tax incentives for domestic manufacturing, is part of a broader policy framework to make America a self-reliant tech manufacturing hub once again.

This national drive puts pressure on U.S.-based multinationals, especially those in critical technology sectors, to align their production closer to home. Yet Apple, despite its U.S. roots, is charting a different course.

Apple’s Strategic Pivot to India

Apple has been manufacturing iPhones in India for several years, but recent developments point to a deeper and more committed pivot. The company now assembles roughly 7% of its global iPhone production in India—a figure expected to rise sharply in the coming years.

Key Milestones:

• Expansion of Manufacturing: Apple’s contract manufacturers like Foxconn, Pegatron, and Wistron have significantly ramped up operations in India. Foxconn, for instance, is investing over $1.5 billion to expand its facilities in Tamil Nadu and Karnataka.
• Retail Presence: Apple opened its first flagship retail stores in Mumbai and Delhi in 2023, signaling confidence in the Indian market—not just as a production base, but as a major consumer hub.
• Export Growth: India exported over $10 billion worth of iPhones in FY 2024–25, up from just $1 billion two years ago, indicating the country's growing role in Apple’s global supply chain.

Why India?

Apple’s growing reliance on India is not just about cost-cutting—it’s about resilience, diversification, and access to a massive consumer base. Here are some driving factors:

• Geopolitical Hedging: With U.S.-China relations under strain, Apple has been actively working to reduce its overdependence on Chinese manufacturing. India offers a politically stable alternative that aligns with Western strategic interests.
• Favorable Government Policies: India’s Production-Linked Incentive (PLI) schemes have made local manufacturing more attractive. These incentives provide tax breaks and subsidies to companies that expand operations and meet export targets.
• Skilled Labor and Scale: India provides a large pool of semi-skilled and skilled labor at competitive wages. Moreover, its infrastructure for electronics manufacturing, though still developing, is improving rapidly.
• Market Potential: With a population exceeding 1.4 billion and a growing middle class, India is not just a manufacturing site but a critical market for Apple’s premium products.

Balancing Act: Apple’s Dual Strategy

Apple’s expansion in India doesn’t mean it’s ignoring the U.S. reshoring narrative. The company continues to invest in U.S.-based R&D, chip design, and data centers. It recently committed over $430 billion to U.S. operations over a five-year period. However, when it comes to hardware assembly, India is clearly becoming a preferred destination.

This dual-track approach allows Apple to:

• Comply with U.S. political expectations through investment in high-tech domestic operations.
• Maintain cost efficiency and supply chain flexibility through offshore assembly in India and Vietnam.

Challenges Ahead

While India holds promise, it's not without hurdles:

• Infrastructure: Logistics and transportation infrastructure still lag behind China's efficiency.
• Policy Uncertainty: Despite recent improvements, bureaucratic red tape and regulatory unpredictability can be a concern.
• Talent and Quality Control: Scaling high-quality output at Apple’s standards remains a challenge that requires time and training.

Conclusion: A Strategic Gamble or Calculated Bet?

Apple’s increased investment in India amid the U.S. reshoring wave may seem contrarian, but it reflects the company’s nuanced global strategy. Rather than reacting to short-term political currents, Apple is placing a long-term bet on India’s role in the future of global manufacturing.

As India rises to become the world’s next tech manufacturing hub, Apple’s bold pivot could well prove to be a defining move—not just for its own future, but for the global supply chain landscape at large.