How Apple’s ‘manufacturing success’ in India is a win for Modi government

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Apple’s iPhone production growth in India last year saw a sharp rise compared to 2022. According to a report by The Economic Times, the Cupertino-based tech giant has manufactured iPhones worth Rs 1 lakh crore in 2023. The report also claims that iPhones worth Rs 65,000 crore were exported during the year. The numbers helped in boosting India’s mobile phone exports to Rs 90,000 crore.
The report cited an official aware of the matter.“To be sure, ₹1 lakh crore is the freight on board (FOB) value at which the devices leave a factory. The market value of the production could be anywhere between ₹1.5 lakh crore and ₹1.7 lakh crore, depending on taxes and dealer margins of various countries,” the official told ET.
Currently, Foxconn, Pegatron and Wistron are the three key contract manufacturers for Apple in India. All three companies have benefited from the PLI scheme.
Apple produced models including iPhone 11, 12, 13, 14 and 15 in India in 2023. Most of these iPhones are exported to the US, Europe and West Asia.
PLI scheme success story for Apple
The iPhone production figures achieved by Apple have reportedly exceeded the targets under India’s production-linked incentive (PLI) scheme. The officials noted that this may allow the company’s contract manufacturers to get more residual incentives depending on the outlay.
This achievement boosts the government’s goal of attracting global supply chains away from China and establishing India as a key production hub for Apple. An official said: “Apple has delivered on the promise of making India a second home for iPhone manufacturing. The company is now expanding its supply chain in the country.”
Apple’s India market share has also increased from 2% to 6% in five years. The iPhone maker is also partnering with Indian suppliers like Tata Group to build a robust supply chain ecosystem within the country.
Moreover, Apple became the first standalone brand to cross the $5 billion export mark from India in FY23. This contributed significantly to India’s overall mobile phone exports.



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