India's value for money makes it a natural pick for the likes of Apple, says govt official

Commerce secretary said factors such as competitiveness will decide the investment decisions

India's competitive edge makes it a natural choice for the likes of Apple Inc., a senior government official said, adding that the country has shown the value of "Make in India".

"If companies recognise the value of manufacturing in India, they will continue to do so. Any company like Apple will focus on their competitiveness and that will inform their investment decision. India has shown its value to make in India," the official said.

The remarks were in response to US President Donald Trump asking Apple CEO Tim Cook to build production facilities for iPhones in America, instead of ramping them up in India.

Trump, who is on a tour of Gulf nations, said, "Told Apple CEO Tim Cook we're not interested in you building in India, they can take care of themselves."

As a result of their discussion, Trump said Apple will be “upping their production in the United States".

The official cited above argued that companies prefer locations that offer low cost and increased productivity.

"Business decisions will be driven by profits so India is coming up as a country that can give good competitive edge to high-tech industries. Irrespective of protectionism, India will continue to attract such companies to make in India," the official aware of the developments said.

Trump’s comments come at a time when Apple is ramping up its base in India and is reportedly aiming to make most of its iPhones sold in the United States at factories in India by the end of 2026.

Apple has already stepped-up production in India to beat Trump's tariffs, shipping some 600 tons of iPhones worth $2 billion to the United States in March.

The shipments from India marked a record for both its contractors Tata and Foxconn, with the latter alone accounting for smartphones worth $1.3 billion, Reuters reported last month.

Moneycontrol reported on May 15 that Apple's largest contract manufacturing partner in India, will scale up production of the iPhone 17 Pro model despite Trump's concerns.

Foxconn has kicked off trial production of the iPhone 17 series in India, while Tata Electronics is also involved in the trial production of components such as casings for the new lineup.

India-US trade deal

Separately, commerce secretary Sunil Barthwal on May 15 said New Delhi is looking to conclude the trade deal with the US as soon as possible.

"Trade between India and US have been growing and once the bilateral trade agreement comes in, it will only add to it,” Barthwal added.

President Trump, speaking in Doha during the second leg of his three-nation West Asia tour, claimed that India had made a significant offer to the United States. “India offered US a deal, basically zero tariffs,” Trump, who is currently on a state visit to West Asia, said from Doha.

However, External Affairs Minister S Jaishankar on May 15 clarified that talks for trade deal between India and the US are ongoing and both sides haven't arrived at anything substantial based on those negotiations.

An Indian team is set to visit the US for an in-person round of talks as early as May 16 as both nations attempt to agree on a trade deal before the Fall of 2025.