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India expects Apple to make more than iPhones here, Google could shift more production from China

India expects Apple to broaden its manufacturing operations in the country beyond iPhones, while Google could move a substantial portion of its export-focused device production from China to India, Electronics and IT Minister Ashwini Vaishnaw said on Friday.

Speaking to Moneycontrol on August 21, Vaishnaw said the government is engaging with Apple to bring more products into its Indian manufacturing network. He also indicated that India could become a major production base for Google as the company seeks to diversify manufacturing outside China.

“India expects Apple to make more than iPhones,” Vaishnaw said, adding that the government is working with the company to expand its manufacturing footprint.

His comments come as both US technology giants increase their presence in India’s electronics manufacturing ecosystem.

Google could shift more export production to India

Google began assembling Pixel smartphones in India in 2023, initially starting with the Pixel 8. The company has since worked with manufacturing partners in the country to increase production and prepare India-made devices for overseas markets.

Dixon Technologies is among the companies involved in assembling Google Pixel devices in India.

Reports this week suggested that Google could stop manufacturing Pixel phones, smartwatches and wireless earbuds in China from 2027, with production shifting to India and Vietnam. The reported move would make India a more important manufacturing and export hub for Google’s hardware business.

Google has not publicly confirmed the reported production shift.

Vaishnaw said the government expects India to receive a significant share of Google’s production intended for overseas markets.

Apple’s India manufacturing base expands

Apple has been manufacturing iPhones in India since 2017 and has steadily increased its production capacity through suppliers including Foxconn and Tata Group.

India is expected to account for about 26% of global iPhone production in 2026, according to Counterpoint Research estimates cited by Reuters. Apple has also turned India into an important export base, with a substantial portion of iPhones produced at Foxconn’s Indian facilities shipped to the US.

The government now wants Apple to extend this manufacturing ecosystem to a wider range of products.

Apple also has component manufacturing operations in India, alongside final assembly of iPhones.

New mobile scheme targets domestic value addition

Vaishnaw’s comments come shortly after the government notified a new Mobile Phone Manufacturing Scheme, aimed at taking India’s electronics manufacturing ambitions beyond assembling finished devices.

The scheme, approved by the Cabinet in July with an outlay of ₹62,500 crore, will operate from FY27 to FY31. It offers incentives of 2.25% to 5% on eligible mobile phone sales, with an additional incentive of up to 1.5% for domestic sourcing of specified components and sub-assemblies.

The new programme follows the earlier PLI scheme for large-scale electronics manufacturing, which ended on March 31, 2026, and places greater emphasis on building a domestic components ecosystem.

Government data shows that 99.2% of mobile phones used in India are now manufactured domestically, while domestic value addition in mobile manufacturing reached 23% in FY24.

Smartphones also became India’s largest individual export product category in FY26, underscoring the country’s growing role in global electronics supply chains.

Also Read: India assembles millions of phones. Now it wants to make more of what goes into them

Source: www.cnbctv18.com

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