iPhone manufacturers cross 20% local sourcing from India, says Nirmala Sitharaman

India has been stepping up efforts to deepen Apple’s manufacturing footprint in the country.

iPhone manufacturers in India have crossed the 20 percent mark in local sourcing, finance minister Nirmala Sitharaman said on June 24, signalling a milestone in country’s ambition to become a key player in global electronics space.

“iPhone contract manufacturers have crossed 20% of local sourcing,” the minister said at the Trade Conclave 2025, organised by Exim Bank in New Delhi.

The development marks a big step in localisation of Apple’s supply chain in India, even as geopolitical currents reshape global manufacturing strategies.

India has been stepping up efforts to deepen iPhone maker Apple’s footprint in the country. This comes even as US President Donald Trump has asked Apple to step up production in the United States. The Modi government has been nudging Apple to expand domestic value addition.

The intent is not just to assemble but to build the backbone of the electronics value chain in India, enabling long-term sustainability and export competitiveness.

Apple's ecosystem

Apple has been accelerating its efforts to build a local supplier base. Indian companies such as Motherson Group, Aequs and Bharat Forge have already been onboarded, as suppliers and are in discussions to forge joint ventures with firms from China, South Korea, Taiwan, and Japan.

These tie-ups are intended to boost the domestic production of high-value components and capital equipment needed for devices such as iPhones, iPads, MacBooks, and AirPods.

Apple is now working with Indian partners to reduce dependence on China by localising the production of capital equipment such as specialised machinery used in high-precision electronics manufacturing.

In a bid to beat US tariff threat, Apple exported approximately 600 tonnes of iPhones worth $2 billion in March alone. The company is now preparing to begin large-scale manufacturing of its upcoming iPhone 17 Pro model in India, expected to launched globally in September.

Foxconn’s subsidiary, Hon Hai Precision Industry Co, has started producing AirPods at its Hyderabad facility for exports. Its new factory in Bengaluru is expected to begin operations soon and play a crucial role in expanding iPhone production for global markets.

In an exchange filing on May 19, Hon Hai announced an infusion of $1.5 billion into its India unit—its largest commitment yet.

Tata Electronics has emerged as a key local assembler of iPhones. Global contract manufacturers such as Foxconn and Pegatron have significantly scaled up operations in India. Foxconn and Tata together operate five iPhone factories in India. These manufacturers form the backbone of Apple’s growing India strategy.