India Provides Competitive Production Opportunity for iPhone Export to US
India is fast becoming a cost-saving option for producing iPhones, with a strong 20% cost advantage when shipping to the US. Indian products produced locally and shipped to the US are not subject to the tariffs imposed on Chinese products, says Pankaj Mohindro, Chairman, India Cellular and Electronics Association (ICEA). This is boosting India's position in the worldwide value chain for electronics, with the US also imposing import duty on Chinese electronics.
On Saturday, the US government officially declared exemption from new tariffs on a wide range of tech products. New tariffs on imported iPhones, laptops, tablets, and smartwatches from China remain in force, though. Imports from India, however, are tariff-free, giving producers a cost-savings advantage.
India's Tariff-Free Advantage Over China
ICEA Chairman Pankaj Mohindro explained that although new retaliatory tariffs on Chinese electronics have been revoked, the 20% tariff on other devices — including iPhones — continues to apply to Chinese imports. That is a competitive advantage for Indian manufacturing. Devices such as iPhones, laptops, and tablets shipped out of India are not subject to such tariffs, making Indian exporters even more competitive.
Vietnam, the other manufacturer driving electronics manufacturing, is also tariff-free in shipping to the US. The nation now makes an array of gadgets, ranging from Samsung smartphones. Like Vietnam, India's tariff exemption facilitates its growing leadership in supplying the US market with electronics. The contrast highlights India's advantageous position within the new trading environment.
India's Smartphones Export Growth Led by iPhones
India's export performance for the year 2024–25 in the smartphone sector was characterized by spectacular growth. Total exports were ₹2 lakh crore, of which iPhones accounted for ₹1.5 lakh crore. This reflects Apple's increasing reliance on Indian manufacturing facilities to meet international demand, particularly in the US.
Domestically, India produced iPhones with a value of approximately ₹1.89 lakh crore in the previous fiscal year. These figures indicate the rapid expansion of domestic manufacturing capacity. India now manufactures one out of every five iPhones made around the world, according to Bloomberg, a metric for the country's evolving position as a global electronics manufacturing hub.
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