Apple May Expand India Manufacturing Beyond iPhones, Says IT Minister Vaishnaw

0
159

New Delhi, India


Union Electronics and IT Minister Ashwini Vaishnaw said on August 21, 2026, that Apple could expand its manufacturing footprint in India beyond iPhones, confirming that the government is in talks with the company to broaden the range of products it assembles domestically. Asked directly whether Apple could manufacture products such as iPads and MacBooks in India, Vaishnaw replied, “Yes.”

The comments came as the government formally notified the ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS), a five-year programme running from FY2026-27 to FY2030-31, designed to replace the earlier large-scale electronics manufacturing incentive framework.

What the Minister Said

Vaishnaw said cumulative mobile phone production, which stood at around ₹20 lakh crore under the previous programme, is expected to nearly double to approximately ₹40 lakh crore under the new scheme. “That’s a big, big thing,” he said. He added that smartphones, currently India’s largest single export category, would retain and strengthen that position, while electronics, now the country’s third-largest export category, would sustain its growth trajectory.

Vaishnaw also said Google is expected to move a large share of its export-orientated Pixel production out of China and into India, building on manufacturing lines already run by partners including Dixon Technologies.

About the Mobile Phone Manufacturing Scheme

The MPMS is structured across two segments: Target Segment 1 incentivises mobile phone manufacturing directly, offering 2.5–5% incentives on eligible sales with additional support tied to local component sourcing, Indian design and R&D; Target Segment 2 supports the emergence of Indian smartphone brands, with a one-year gestation period allowing new entrants to establish operations before claiming incentives.

Eligible components for enhanced incentives include display and camera modules, enclosures, batteries and USB cables. Mobile phone manufacturers registered in India with a minimum FY26 turnover of ₹10,000 crore are eligible under Target Segment 1; electronics manufacturing services firms require a minimum FY26 turnover of ₹1,000 crore. Indian smartphone brands applying under Target Segment 2 must be at least 51% Indian-owned, with domestic control over intellectual property and design patents, and are required to use an original design to qualify.

Government projections put cumulative production at approximately ₹39 lakh crore over the scheme period, with mobile exports targeted at ₹15 lakh crore, and the scheme expected to create around 60,000 direct jobs in mobile manufacturing and allied sectors.

Indian Smartphone Brands in the Pipeline

Vaishnaw said the government is separately working with three Indian companies that could emerge as smartphone brands within 10–14 months. These companies have been asked to develop best-in-segment product designs and identify the market segments. Economy, premium or super-premium, where they intend to compete, starting with high-volume value segments before expanding upward.

Value Addition and Sector Context

Vaishnaw said India’s domestic value addition in mobile phone manufacturing currently stands between 25% and 28%, compared with the 38–40% ceiling that countries have historically achieved over four decades of manufacturing maturity. He said the new scheme’s structure is expected to improve that figure meaningfully over the MPMS period.

Total employment in mobile phone and electronics manufacturing has crossed 25 lakh, according to Vaishnaw. India currently produces 99.2% of mobile phones sold domestically, up from just 26% in 2014-15, and has become the world’s second-largest mobile phone manufacturer by volume, with more than 300 manufacturing units operating nationwide, up from just two in 2014.

Apple began assembling iPhones in India in 2017 and has since expanded production through manufacturing partners, including Foxconn and the Tata Group. All four iPhone 17 models were manufactured in India ahead of their global launch this year, marking the first time every variant of a new iPhone generation was produced in and shipped from India at launch. Apple exported iPhones worth approximately ₹1.5 lakh crore (around $17 billion) from India in FY25, accounting for roughly 70% of the country’s total smartphone exports that year.

Broader Electronics Manufacturing Push

The MPMS notification follows the Centre’s earlier ₹22,919 crore Electronics Component Manufacturing Scheme (ECMS), notified in April 2025 to build a domestic supply chain for components including camera modules, PCBs, connectors and other sub-assemblies that sit beneath finished electronics products. Electronics manufacturing value in India rose from $29 billion in 2013-14 to $105 billion in 2022-23, according to figures the minister has cited previously.

LEAVE A REPLY

Please enter your comment!
Please enter your name here