Apple and Google May Deepen Manufacturing Footprint in India
India’s ambition to become a global electronics manufacturing and export powerhouse is entering an accelerated growth phase, with technology leaders Apple and Google preparing to significantly deepen their manufacturing and assembly operations in the country.
Union Minister for Electronics and IT Ashwini Vaishnaw recently indicated that Apple is exploring the expansion of its manufacturing footprint beyond smartphones to encompass broader hardware categories, while Google is positioned to route a major share of its export-oriented device production through Indian manufacturing hubs.
The developments underscore how India is transforming from a high-volume consumer market into an indispensable node in global technology supply chains.
Apple: Expanding Beyond iPhone Assembly into High-Value Ecosystems
Apple’s manufacturing journey in India, which began with baseline device assembly in 2017, has matured into a pillar of its worldwide supply chain. Partnering with contract manufacturers such as Foxconn, Pegatron, and the Tata Group, the company is projected to produce approximately 26% of all global iPhones in India in 2026.
The strategic priority is now shifting from finished device assembly toward high-value component manufacturing and broader hardware lines. Discussions between the Indian government and Apple aim to bring additional product categories into local facilities, increasing domestic value capture across enclosures, camera modules, and sub-assemblies.
Google: Building an Export Base for Premium Hardware
Google has steadily scaled its hardware footprint since initiating local production of its flagship Pixel smartphones with partners including Dixon Technologies.
As multinational technology companies accelerate their "China+1" diversification strategies, industry reports indicate Google is evaluating shifting a substantial portion of its export-focused production, potentially spanning Pixel smartphones, smartwatches, and wireless audio devices, to manufacturing clusters in India and Vietnam. This transition would position India as a key manufacturing hub for Google's premium consumer hardware shipped to North American and European markets.
Policy Support: The Rs. 62,500-Crore Mobile Phone Manufacturing Scheme
To support this next phase of industrial expansion, the Ministry of Electronics and Information Technology (MeitY) has notified the Mobile Phone Manufacturing Scheme (MPMS) with an outlay of Rs.62,500 crore, operating from FY 2026-27 to FY 2030-31.
Replacing the initial Production Linked Incentive (PLI) framework, the scheme is engineered to drive domestic value addition, increase component sourcing, and build homegrown design capabilities:
- Tiered Manufacturing Incentives: Offers base incentives of 2.25% to 5% on incremental mobile phone sales.
- Component Sourcing Bonuses: An additional incentive of up to 1.5% is provided for sourcing critical sub-assemblies locally (including display modules, camera units, enclosures, and battery packs) across at least 25% of annual unit production.
- Support for Domestic Brands & IP: Provides a flat 5% incentive plus an additional 3% for Indian-owned design, research, and intellectual property (IP), encouraging domestic OEMs to develop high-volume and premium devices.
Transitioning from Domestic Demand to Global Export Engine
India's electronics sector has achieved a seven-fold production growth and an eleven-fold surge in exports over the past decade. With domestic consumption largely secured by local assembly lines, the next growth frontier centres on high-precision tooling, semiconductor packaging, display integration, and supply-chain logistics.
The continued capital deployment from ecosystem leaders like Apple and Google, combined with structured policy incentives, accelerates India's transition up the electronics value curve, transforming the country into an advanced export hub for high-complexity consumer technology.
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