India Remains Most Viable Option For Apple’s iPhone Production: NITI Aayog CEO

ENA Sectors 2025-05-26 15:44:11 New Delhi, May 26 (KNN) India continues to present the most economically viable option for Apple's iPhone manufacturing operations outside China, according to BVR Subrahmanyam, Chief Executive Officer, NITI Aayog. Following the 10th Governing Council meeting of India's policy think tank, Subrahmanyam emphasised that the country's established manufacturing ecosystem and competitive cost structure provide significant advantages over alternative locations amid evolving global trade dynamics. The comments come as Apple faces mounting pressure regarding its manufacturing strategy, particularly in light of proposed US tariffs on Chinese imports under President Donald Trump's trade policies. While India currently benefits from lower tariff rates compared to China when exporting to the United States, the company's production decisions have drawn direct criticism from the Trump administration. President Trump recently addressed Apple's manufacturing plans through his Truth Social platform, stating his expectation that iPhones sold in the United States should be manufactured domestically rather than in India or other international locations. The president indicated that failure to comply with this preference could result in tariffs of at least 25 percent on Apple products. Industry analysts maintain that relocating iPhone production to the United States would present significant economic challenges. The absence of adequate manufacturing scale and integrated supply chain infrastructure makes domestic production financially impractical. Apple's current production network remains heavily concentrated in Asia, with established operations in China and expanding facilities in India. A transition to US-based manufacturing would substantially increase production costs and potentially compromise the operational efficiency that underpins Apple's business model. Higher labour costs, limited supplier ecosystems, and extended production timelines would likely translate to increased consumer prices for Apple products. Despite political pressure from Washington, Apple's strategic decisions are expected to prioritise operational feasibility and profit optimisation. Indian officials remain confident that the country's advantages, including skilled workforce availability, supportive regulatory frameworks, and developing infrastructure, will continue to attract Apple's investment. India has already established itself as a significant manufacturing base for Apple's production partners, including Foxconn and Tata Electronics. The country is strategically positioning itself as a primary alternative manufacturing destination as global technology companies seek to diversify their production footprint beyond China. (KNN Bureau) 42212 https://knnindia.co.in/news/newsdetails/sectors/india-remains-most-viable-option-for-apples-iphone-production-niti-aayog-ceo 2025-05-26 15:44:11 knnindia.co.in India Remains Most Viable Option For Apple’s iPhone Production: NITI Aayog CEO