Key Highlights
- Apple, Samsung shift exports to India
- India offers lower US tariff rates
- Smartphone production in India to rise
Rising US tariffs on China and Vietnam are pushing Apple and Samsung to shift manufacturing to India. The ‘Make in India’ initiative is gaining momentum as companies look to avoid steep import duties while boosting supply chain resilience for the US market.
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India Emerges As A Strategic Export Hub
Both Apple and Samsung are now looking at India not just for local sales but as a major production and export base for the US, a move triggered by new tariffs announced by the Trump administration.
- Apple Prioritizes India For US Shipments
Apple has already begun using its Indian production facilities to ship iPhones to the United States. The goal is to sharply reduce dependence on China, which now faces a 54 percent tariff on exports to the US. India, by comparison, faces a relatively lower tariff of 26 percent, making it a more attractive option.
- Foxconn And Tata Driving Local iPhone Production
Apple’s Indian manufacturing is being handled by Foxconn and the Tata Group. Tata recently acquired production assets from Taiwanese firms Wistron and Pegatron, strengthening its role in Apple’s supply chain. Industry insiders say this could lead to a significant expansion in Apple’s Indian operations, especially if the brand avoids setting up new plants in other low-tariff countries like UAE, Saudi Arabia, or Brazil.
- Potential Surge In iPhone Exports From India
iPhone shipments to the US from India are expected to surge past the current $10 billion estimate. A lot will depend on how the geopolitical trade negotiations evolve, but Apple appears committed to leveraging India’s manufacturing ecosystem for future growth.
- Samsung May Shift Exports From Vietnam To India
For Samsung, the scenario is equally urgent. Its Vietnamese factories currently export around $55 billion worth of goods, but a 46 percent tariff may push the company to pivot to India’s Noida plant, which already produces flagship models like the Galaxy S25 and Fold.
- India’s Global Manufacturing Role Strengthens
Trade negotiators are closely monitoring these changes. With countries like Vietnam proposing zero-duty exports, India is using the opportunity to push its global manufacturing ambitions and strengthen bilateral trade negotiations with the US.
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As tariff dynamics continue to evolve, India’s role as a global smartphone manufacturing hub is set to grow, potentially redefining the future of tech exports.
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