Mumbai, May 15: The Indian government's Production Linked Incentive (PLI) scheme, which gives financial incentives to companies that increase their production in India, has incentivised Apple's expansion in the country. In addition, the tariff war between the US and China caused Apple to increase its production in India. However, a recent statement by US President Donald Trump dealt a blow to Apple's plan to increase iPhone production in India.

Speaking at a business event in Doha on Thursday, May 15, Donald Trump said he has told Apple CEO Tim Cook that he does not want him "building in India". "I said to him, my friend, I am treating you very good. You are coming up with $500 billion, but now I hear you are building all over India. I don't want you building in India. You can build in India, if you want to take care of India because India is one of the highest tariff nations in the world, so it is very hard to sell in India," the US President said. Setback for ‘Make in India’ Initiative? Donald Trump Asks Tim Cook To Not Build Apple Plants in India, Says ‘India Can Take Care of Themselves’ (Watch Video).

Trump further claimed that India has offered a deal to the US and said it would charge zero tariffs on American goods. "They (India) offered us a deal where basically they have agreed to charge us literally no tariffs... I said Tim, we are treating you really good, we put up with all the plants you built in China for years. We are not interested in you building in India. India can take care of themselves. They are doing very well. We want you to build here (in America)," Trump said.

Apple Plans to Ramp Up iPhone Production in India

While Trump does not want Apple to build its manufacturing plants in India, the iPhone maker intends to increase production in India significantly. Earlier this month, Tim Cook said that India would be the country of origin for most iPhones sold in the US in the June quarter. The US is the biggest market for iPhone sales. India has become a significant source of iPhones for the US market, and one in five iPhones sold in America is made in India. Notably, Apple assembled iPhones worth USD 22 billion in India during the 12 months ending in March, nearly a 60% jump year-over-year. Made-in-India iPhones To Dominate Global Markets? Here’s What Apple CEO Tim Cook Said About Shifting iPhone Production From China to India for US Market Amid Tariff War.

Why Is Apple Moving From China to India?

Apple began shifting its suppliers and production units from China during the coronavirus pandemic. It gradually increased its production in India during the following years. The tariff war between the US and China following Donald Trump's return as President also impacted Apple's manufacturing strategy. Trump announced higher tariffs on Chinese goods, forcing Apple to diversify its supply chain to mitigate costs.

Thanks to the Indian government's "Make in India" initiative, India emerged as a key alternative and has gradually become a crucial part of Apple's long-term strategy to reduce reliance on China. Shifting production in India not only helps Apple avoid high tariffs on iPhones imported from China but also allows it to tap into India's growing domestic market.

Will Apple Change Its Manufacturing Strategy Again?

While Apple wants to make more iPhones in India and reduce its dependency on China, Trump has his plans. He wants Apple to make iPhones domestically by setting up manufacturing units in the US. With this, Trump intends to create new job opportunities. Will he succeed in convincing Apple? "Apple has one of the most sophisticated supply chains built out over years. To disrupt that or to completely move out of India or China will be extremely difficult," Tarun Pathak, research director at tech analytics firm Counterpoint, told Bloomberg.

(The above story first appeared on LatestLY on May 15, 2025 06:49 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).