Make in India Triumph: 5 Shocking Reasons Apple & Samsung Are Rushing to Shift Production

Global smartphone leaders Apple and Samsung are increasingly turning to India for manufacturing, driven by rising U.S. tariffs on imports from China and Vietnam. Apple has begun exporting iPhones from Indian factories to the U.S., aiming to reduce its reliance on Chinese production. The move aligns with India’s “Make in India” vision and could lead to significant investment and expansion in local facilities. Tata and Foxconn currently handle most of Apple’s manufacturing in India, with potential for major growth if Apple doesn’t explore new hubs like the UAE or Brazil.

Samsung is also reassessing its supply chain, as exporting from India now carries a lower duty than from Vietnam. Its Noida factory may see increased output for U.S. shipments. These shifts could strengthen India’s role as a global manufacturing powerhouse. Meanwhile, Indian trade negotiators are leveraging these developments to push for stronger bilateral agreements with the U.S.

Make in India Triumph: 5 Shocking Reasons Apple & Samsung Are Rushing to Shift Production

Global tech giants Apple and Samsung are making major shifts in their manufacturing strategies, and India is emerging as a key player in their plans. With the United States imposing higher tariffs on goods from China and Vietnam, both companies are actively exploring India as a cost-effective alternative for producing smartphones destined for the U.S. market.

Transitioning production from one country to another isn’t easy. It involves navigating regulatory complexities, managing logistics, and setting up or scaling manufacturing infrastructure. Despite these hurdles, the urgency to stay competitive in the face of U.S. trade policies has pushed these companies to prioritize India in their global supply chains.

Apple Accelerates Indian Manufacturing

Apple has taken a proactive approach by starting to export iPhones manufactured in India directly to the U.S. This strategic move is aimed at reducing dependence on Chinese factories, which have long been Apple’s main production base. The decision follows a significant increase in tariffs announced by the U.S.—26% on Indian imports compared to a much steeper 54% for Chinese goods and 46% for Vietnamese products.

Industry experts say Apple’s strategy is to use Indian manufacturing mainly for fulfilling U.S. demand, while continuing to use its Chinese facilities to cater to other global markets such as Europe, Asia, and Latin America. If this approach works well, it could result in a substantial expansion of Apple’s manufacturing footprint in India.

Currently, Apple’s Indian production is handled by Foxconn, a major Taiwanese electronics manufacturer, and India’s Tata Group. Tata has ramped up its involvement in Apple’s supply chain by acquiring the Indian operations of two other Taiwanese firms, Wistron and Pegatron. Insiders suggest that unless Apple opens new facilities in countries like Brazil, Saudi Arabia, or the UAE—which face only a 10% U.S. import tariff—India is likely to become one of Apple’s main global manufacturing centers.

Samsung Adjusts to New Trade Realities

Samsung, another major smartphone manufacturer, is facing similar challenges. Its Vietnam-based factories currently generate over $55 billion in exports annually. However, with the U.S. now imposing a 46% tariff on Vietnamese imports, Samsung is considering shifting more production to India, where the tariff stands at 26%.

As a result, Samsung is expected to boost output at its Noida factory in India, which already manufactures flagship models like the Galaxy S25 and the Fold series. Though Vietnam is in talks with the U.S. to negotiate zero-duty access for its goods, the outcome remains uncertain. In the meantime, increasing production in India is seen as a practical and strategic move.

This shift also aligns perfectly with India’s “Make in India” initiative, which seeks to establish the country as a global hub for electronics and high-tech manufacturing. As more global brands look to diversify their supply chains away from China, India stands to benefit immensely.

What Lies Ahead?

These changes in manufacturing strategy are being closely monitored by Indian policymakers, especially those engaged in trade negotiations with the U.S. The goal is to leverage these developments to secure more favorable terms for India in upcoming trade deals. With Apple and Samsung redirecting major parts of their production to India, the country is well-positioned to gain both economically and strategically.

If these trends continue, India could see a surge in foreign direct investment, an increase in exports, and the creation of thousands of jobs in the tech and manufacturing sectors. With global supply chains shifting and India becoming a preferred alternative to China, the country may soon establish itself as a critical player in the world of electronics manufacturing.