India is actively encouraging Apple to broaden its manufacturing operations within the country, moving beyond its current focus on iPhones. Union Electronics and IT Minister Ashwini Vaishnaw stated on Friday that India expects Apple to begin producing other key products like iPads, MacBooks, and AirPods locally. This push is part of a larger government strategy to establish India as a comprehensive global electronics manufacturing hub, reducing reliance on single-country supply chains.
Government Incentives Drive Expansion
The Indian government has launched a new Mobile Phone Manufacturing Scheme (MPMS) 2.0, with an outlay of ₹62,500 crore over five years, running from fiscal year 2026-27 through 2030-31. This scheme aims to incentivize both domestic and international manufacturers to scale up production and deepen local value addition. Under the new framework, eligible companies can receive incentives ranging from 2.25% to 5% on eligible sales. An additional incentive of up to 1.5% is available for companies that source specified components domestically, such as display and camera modules, enclosures, batteries, and USB cables.[m+7]
Minister Vaishnaw confirmed that discussions with Apple are underway to expand its manufacturing footprint to products beyond iPhones. When asked directly if Apple could manufacture MacBooks and iPads in India, Vaishnaw replied "yes," signaling the government's strong expectation for such a move. The goal is to move India's electronics sector beyond assembly, fostering greater domestic supply chains, product design, research, and development.[financialexpress+5]
AirPods Production Already Ramping Up
Apple's contract manufacturing partner, Foxconn, is already significantly expanding its AirPods production in India. The Foxconn facility in Hyderabad is set to double its monthly output of new AirPods models. Production capacity will increase from more than 100,000 units per month to 200,000 units per month. This expansion involves overhauling five existing production lines and transferring additional equipment from Foxconn facilities in Vietnam.[9to5mac+6]
Foxconn is investing ₹48 billion in this expansion, with ₹30 billion already committed. The workforce at the Hyderabad plant is also expected to more than double, growing from approximately 2,000 employees to around 5,000. The site began mass production of AirPods in April. Thisacceleration aligns with Apple's broader strategy to diversify its accessory manufacturing in India and meet rising international demand, particularly in the U.S. and Europe.[9to5mac+7]
Strategic Shift Away from China
Apple's push to expand manufacturing in India is a strategic move to reduce its long-standing reliance on China for production. Geopolitical tensions between the United States and China, along with the prospect of tariffs, have prompted Apple to fast-track its supply chain diversification. The company aims to build a more resilient manufacturing network, limiting dependency on any single country.[facebook+7]
India has rapidly emerged as a critical manufacturing hub for Apple. The country is expected to account for approximately 26% of global iPhone production in 2026. By December 2025, Apple had already exported over $50 billion worth of iPhones from India. Thisdramatic increase highlights India's growing role as a key pillar in Apple's global strategy. Apple is reportedly planning to shift the assembly of all iPhones sold in the U.S. to Indian production lines by the end of 2026, encompassing more than 60 million units annually.[manufacturing-today+8]
Expanding India's Electronics Ecosystem
The Indian government's ambition extends beyond just assembling finished products. It aims to develop a deeper domestic electronics ecosystem. India has already started exporting selected electronic components for Apple products, including AirPods, MacBooks, and Apple Watches, to assembly lines in China and Vietnam. Thisdevelopment signals India's expanding role in high-value manufacturing and its increasing integration into Apple's global supply chain.[facebook+1]
Companies like Tata Electronics, Motherson Group, Aequs, and Jabil are now producing key parts for Apple devices within India. TataGroup has become a major player in Apple's local supply chain, having acquired Wistron's Indian operations and managing Pegatron's local production. Thisgrowth boosts India's domestic electronics industry, which historically relied on imports.[facebook+4]
While India's manufacturing ecosystem is still maturing compared to China's, the government is actively working to address challenges such as the absence of a strong local supplier base. The new MPMS 2.0 scheme specifically encourages domestic sourcing and local research and development. India's policy certainty and growing design capabilities also provide significant advantages.[facebook+4]
TheIndian government expects Apple to achieve an annual production output worth $50 billion in India over the next five years, with a broadened product range that includes MacBooks, iPads, AirPods, and Apple Watches. Thisexpansion marks a pivotal moment, positioning India to become a major export manufacturing base for Apple and a significant player in the global technology landscape.[financialexpress+2]
