Niti Aayog's chief executive officer BVR Subrahmanyam said India offers a cheaper alternative to Apple's iPhone manufacturing plans compared to most other countries.
"What the tariff will be, is uncertain. Given the dynamics, we will be cheap place to manufacture," he said during a press briefing after the 10th Governing Council meeting of the top policy think tank.
Recently, the US-based tech giant was considering moving its production facilities for America-bound iPhones to India from China after President Donald Trump announced tariffs on imports.
Apple’s US manufacturing push could backfire; India still most viable option outside China
The tariffs, announced earlier, were higher on China compared to India, which made Apple consider shifting its manufacturing plants.
However, this irked Trump who threatened to impose a tariff of 25 percent on Apple if it decides to manufacture its phones in India or anywhere else.
"I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25 percent must be paid by Apple to the U.S. Thank your for your attention to this matter!" he wrote on Truth Social.
However, it may not be economically prudent for the iPhone maker to make in USA, mainly because of price and ecosystem concerns, experts believe.
With Apple’s supply chain deeply entrenched in Asia, shifting production stateside would result in significantly higher costs, longer lead times, and ultimately, more expensive iPhones.
Despite Trump's tantrums, India remains optimistic that Apple will make a decision that prioritises profitability over economic nationalism.
New Delhi is betting on the availability of talent and facilities along with business viability taking the precedence for the iPhone maker over anything else.
With inputs from PTI
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
