How Lower Tariffs Strengthen Apple’s ‘Make in India’ Strategy

India is no longer just a fast-growing smartphone market for Apple — it has become a serious manufacturing hub. Over recent years, iPhones assembled in India have begun shipping to global markets, including the US. Now, with the latest India-US trade agreement reducing tariffs from 50% to 18%, Apple’s long-term manufacturing ambitions in India look stronger, even though iPhones were already exempt from these duties.

Stability Matters More Than Tariff Cuts

Industry experts emphasize that the real advantage lies not in immediate tariff relief but in stability and predictability. Apple and other tech giants value consistent trade policies over temporary exemptions, which can be withdrawn or renegotiated.

Expert Views on Apple’s Expansion

• Tarun Pathak (Counterpoint Research): The tariff reduction strengthens India’s position as a reliable trade partner, reducing risks of sudden policy changes.

• Faisal Kawoosa (TechArc): While iPhones were already exempt, the deal signals smoother India-US trade relations, boosting confidence for Apple and others.

• Abhilash Kumar (TechInsights): Even if exemptions end, tariffs would now be capped at 18% instead of 50%, giving Apple greater confidence to expand assembly operations in India.

Policy Changes Empower Apple

Recent budget announcements allow foreign companies to install their own manufacturing equipment at contract facilities. For Apple, this means less reliance on partners like Foxconn and Pegatron, and more control over quality and consistency. This policy shift helps India close the gap with China’s established manufacturing ecosystem.

Wider Impact Beyond Apple

The tariff cut benefits multiple industries beyond smartphones, potentially boosting disposable incomes and consumer spending. A stronger India-US trade relationship also enhances investor confidence across electronics, engineering, and emerging tech sectors.

India’s Role in Apple’s Global Supply Chain

What was once seen as a backup plan during China-US trade tensions has now evolved into a long-term strategy. India is becoming a key pillar in Apple’s global supply chain, offering large-scale production, a skilled workforce, and improved trade certainty.

Short-Term vs Long-Term Outlook

Consumers may not see immediate price drops in iPhones, but behind the scenes, Apple’s confidence in India as a manufacturing hub has clearly grown. The combination of reduced tariffs and new policy support positions India as a critical base for Apple’s future exports.