Why iPhone Maker Foxconn Is Betting Big On India — and Why Is Donald Trump Unhappy About It?

A major transformation is underway in India’s tech manufacturing sector, centred around Foxconn’s soon-to-launch unit in Devanahalli, Karnataka.

This plant, situated in the Information Technology Investment Region (ITIR), is expected to begin commercial iPhone shipments as early as June, according to Karnataka’s Commerce and Industries Minister M. B. Patil.

He noted that Apple is increasingly looking to India as a key manufacturing hub, especially as the geopolitical and trade landscape becomes more complex.

“This is a proud moment for Karnataka. From Mysuru to Cupertino, we are making global headlines,” said M. B. Patil, highlighting that a majority of iPhones sold in the US in the upcoming quarter will be made in India.

Why India?

India’s growing appeal as a manufacturing hub comes at a time when companies are looking to reduce reliance on China.

With strong government support, a skilled workforce, and improving infrastructure, India offers a stable and cost-effective alternative. The ongoing US-China trade tensions have only accelerated this trend.

Prime Minister Narendra Modi has made electronics manufacturing a core part of India’s economic vision. The country’s semiconductor ecosystem is also picking up, with five major projects approved and nearly Rs 1.52 lakh crore in combined investment.

India’s Mobile Manufacturing Rise

India’s journey in mobile manufacturing has been extraordinary. In 2014, only 26% of mobile phones sold in India were made locally. Today, that number stands at a staggering 99.2%. The country, which had just 2 mobile manufacturing units in 2014, now boasts over 300.

The total manufacturing value has grown from Rs 18,900 crore in FY14 to Rs 4.22 lakh crore in FY24, showing how rapidly the sector has matured.

In addition to meeting local demand, India is now exporting mobile phones on a large scale. Exports rose from just Rs 1,566 crore in 2014-15 to over Rs 1.29 lakh crore in FY24.

The sector’s success is fueled by government initiatives and incentives, such as the Production-Linked Incentive (PLI) scheme, aimed at attracting global players.

Also Read: Why Did India Impose Trade Restrictions on Bangladesh?

Why Is Trump Unhappy About It?

Despite India’s growth, Apple’s shift to Indian manufacturing hasn’t been well-received by everyone.

US President Donald Trump recently expressed frustration with Apple CEO Tim Cook. Speaking in Qatar, Trump said he had a “little problem” with Cook over Apple’s decision to move iPhone assembly for the US market from China to India.

He criticised the move, saying Apple should be building in the US instead.

“We’ve treated you good… now you got to build [for] us,” Trump remarked, claiming that Apple should invest more in the US. 

He also noted that India has offered to eliminate tariffs on American goods, aiming to seal a trade deal within 90 days.

However, experts argue that manufacturing iPhones in the US would be impractical and would significantly increase the cost. Estimates suggest the price of iPhones could triple if assembled in the US due to higher labor and operational costs.