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India Eyes Expanded Production for Apple and Google Beyond Basic Assembly

India is actively working to broaden its domestic electronics manufacturing landscape, encouraging major global technology firms to deepen their local footprint. Electronics and IT Minister Ashwini Vaishnaw stated that the central government expects Apple to expand its manufacturing operations in the country beyond iPhones, while Google could relocate a significant portion of its export-oriented device assembly from China to India.

What Happened

In a discussion with Moneycontrol on August 21, Minister Ashwini Vaishnaw confirmed that discussions are underway with Apple to integrate a broader array of its product portfolio into Indian manufacturing facilities. Vaishnaw observed that India expects Apple to make more than iPhones as the government cooperates with the firm to enlarge its production base.

Alongside Apple, India is positioned to become a central manufacturing and export hub for Google as the company pursues geographic diversification outside China. Industry reports indicated that Google could potentially halt the production of Pixel smartphones, smartwatches, and wireless earbuds in China from 2027 onward, shifting those operations to India and Vietnam. While Google has not publicly confirmed this transition, Vaishnaw noted that Indian authorities anticipate securing a sizable proportion of Google’s export-bound manufacturing volume.

Key Highlights

  • Apple Product Diversification: The government is in talks with Apple to manufacture devices beyond iPhones in India, building on an ecosystem that began in 2017 and currently involves suppliers such as Foxconn and Tata Group.
  • Global iPhone Share: According to Counterpoint Research estimates cited by Reuters, India is projected to represent approximately 26% of worldwide iPhone output in 2026.
  • Google Hardware Relocation: Having initiated local assembly with the Pixel 8 in 2023 alongside partners like Dixon Technologies, Google may transition production of phones, smartwatches, and earbuds from China to India and Vietnam by 2027.
  • New Manufacturing Framework: The Union Cabinet approved a new Mobile Phone Manufacturing Scheme with an outlay of ₹62,500 crore, spanning FY27 to FY31 to follow the earlier PLI programme that concluded on March 31, 2026.
  • Local Value Addition Focus: The newly notified scheme provides baseline sales incentives between 2.25% and 5%, along with an extra incentive of up to 1.5% for domestic procurement of designated components and sub-assemblies.

Why This Matters

The push to diversify product lines aligns with India’s long-term strategy to evolve from simple terminal assembly into high-value component manufacturing. Government data indicates that 99.2% of mobile devices utilised in India are currently produced within the country, and domestic value addition reached 23% in FY24.

Furthermore, smartphones emerged as India’s single largest individual export product category in FY26. Facilities run by Foxconn already dispatch a substantial volume of Indian-made iPhones directly to the United States. Expanding production agreements to cover Google’s wider hardware ecosystem and non-phone Apple products reinforces India’s integration into global electronics supply networks.

What to Watch Next

Official announcements from Google regarding its reported 2027 production shifts away from China remain pending. Moving forward, the operational rollout of the ₹62,500 crore Mobile Phone Manufacturing Scheme from FY27 will serve as a key milestone to track how effectively India boosts local component sourcing and broadens device categories manufactured on domestic soil.

Frequently Asked Questions

What products does Apple currently manufacture in India?

Apple currently manufactures iPhones in India through suppliers such as Foxconn and Tata Group, and it also conducts local component manufacturing operations.

When did Google start assembling smartphones in India?

Google initiated local assembly of its Pixel smartphones in India in 2023, commencing with the Pixel 8 model in partnership with domestic assemblers such as Dixon Technologies.

What are the terms of the new Mobile Phone Manufacturing Scheme?

Approved with an allocation of ₹62,500 crore from FY27 to FY31, the scheme offers incentives ranging from 2.25% to 5% on eligible mobile sales, accompanied by up to 1.5% in supplemental incentives for sourcing specified components locally.

Source: Based on reporting by Moneycontrol and CNBC-TV18.