India still best bet for Apple despite tariff threats, says Niti Aayog CEO
India remains the most viable and cost-effective option for Apple to manufacture iPhones outside China, according to BVR Subrahmanyam, CEO of Niti Aayog. Speaking after the 10th Governing Council meeting of the policy think tank, Subrahmanyam said India’s favourable manufacturing ecosystem and lower costs give it an edge over other countries, even in the face of shifting geopolitical pressures.
“What the tariff will be, is uncertain. Given the dynamics, we will be a cheap place to manufacture,” Subrahmanyam told reporters, reinforcing India’s pitch as a global electronics hub. His comments follow growing speculation that Apple could move more of its production to India, especially for devices destined for the US market.
This consideration comes in response to newly proposed US tariffs targeting Chinese imports under President Donald Trump’s reciprocal trade policy. While India currently faces lower tariffs than China, Trump has openly criticised Apple’s plans to manufacture iPhones outside the US.
Trump Threatens 25% Tariff on India-Made iPhones
On his social media platform Truth Social, Trump posted: “I have long ago informed Tim Cook of Apple that I expect their iPhones 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.”
However, tech analysts believe manufacturing iPhones in the US is economically unfeasible due to a lack of scale and supply chain integration. Apple’s current production system is deeply embedded in Asia, particularly in China and, increasingly, India.
Supply Chain Realities and Business Viability
Shifting large-scale production to the US would raise costs and disrupt the efficiency Apple relies on. The lack of a robust ecosystem, higher labour expenses, and extended lead times would likely result in significantly more expensive products for consumers.
Despite Trump’s public disapproval, Apple is expected to base its decision on operational feasibility and profit margins. New Delhi is optimistic that factors such as local talent, supportive policy frameworks, and expanding infrastructure will continue to attract the iPhone maker.
India is already a growing hub for Apple’s manufacturing partners, including Foxconn and Tata Electronics, and is positioning itself as a strategic alternative as global tech giants diversify away from China.
