Apple’s India Push Moves Ahead — Trump’s Objection or Not
In a bold strategic move, Apple is pressing ahead with its India manufacturing expansion, greenlighting a $1.5 billion investment through its key partner Foxconn — despite open disapproval from U.S. President Donald Trump.
Just days after Trump publicly urged Apple CEO Tim Cook to halt production in India and bring operations back to the U.S., Foxconn confirmed its commitment to the Indian market. The investment will go into a new display module plant in Tamil Nadu, reinforcing Apple’s growing shift away from China.
This latest development not only deepens Apple’s manufacturing roots in India but also reasserts the company’s independence in navigating geopolitical pressures.
Trump to Tim Cook: “Don’t Build in India”
At a recent meeting with U.S. and Qatari business leaders, Trump took direct aim at Apple’s India strategy. Addressing Tim Cook, he said: “I said, ‘Tim, you’re my friend… I don’t want you building in India. Build here. We put up with all the plants in China. India can take care of themselves.’”
Trump’s comments reflect his broader protectionist stance — pushing to bring American manufacturing back home. He criticized India’s high tariffs and challenged Apple’s global expansion strategy, portraying overseas investment as disloyal.
However, these remarks seem to have had little impact on Apple’s roadmap. The company quickly reassured Indian officials that its investment trajectory in India remains unchanged.
Tim Cook’s Calculated Defiance: Why Apple Isn’t Backing Down
Apple’s decision to expand in India despite political resistance isn't just bold — it’s strategic.
Global supply chains are in flux due to the U.S.-China trade war, and Apple has been actively diversifying its production footprint. India has emerged as a crucial alternative, offering a large talent pool, government incentives, and a politically neutral stance in global trade tensions.
Currently, about 15% of all iPhones are manufactured in India. Apple plans to raise this to 25% in the coming years — a move that would drastically reduce its dependence on China.
As one senior Indian official remarked, “One stray comment isn’t going to undo months or years of supply chain strategy.” Apple is playing the long game.
Foxconn’s Mega Investment: What It Means
Foxconn’s new $1.49 billion investment, through its Indian subsidiary Yuzhan Technologies, will fund a display module plant in Kancheepuram, Tamil Nadu. This plant is part of a larger ₹13,180 crore ($1.6 billion) project already cleared by the Tamil Nadu government.
Apple’s deepening ties with India are reinforced through its supply chain ecosystem. Alongside Foxconn, contract manufacturers Tata Electronics and Pegatron are ramping up operations — a reflection of how seriously Apple is betting on India as a production hub.
This expansion is not just about cost efficiency; it’s also about stability. With global trade becoming unpredictable, India offers a relatively safe harbor.
India’s PLI Scheme: Fueling Apple’s Ambitions
A major incentive for Apple’s India surge has been the Indian government’s Production Linked Incentive (PLI) scheme. Designed to boost local manufacturing, the PLI has channelled nearly $1 billion in subsidies over three years.
Apple’s partners — Foxconn, Tata, and Pegatron — have collectively received over 75% of the disbursed amount. Foxconn alone received ₹2,450 crore ($294 million) in 2023–24, the highest among all participants.
India’s latest ₹23,000 crore incentive scheme for electronics components will likely attract even more Apple suppliers. The message is clear: India is not just welcoming Apple — it’s actively competing to become its next global hub.
The Big Picture: What This Means for India and Apple
Apple’s manufacturing pivot has enormous implications.
· For India, it’s a vote of confidence that strengthens its status as a global tech and manufacturing hub. Apple’s operations are boosting local employment, increasing exports, and reinforcing the country’s “Make in India” mission. In FY25 alone, iPhone exports from India touched ₹1.5 lakh crore — a record figure.
· For Apple, it’s a diversification milestone. By reducing reliance on China and asserting operational independence despite political pressure, Apple is reinforcing its resilience.
· For Trump, it’s a challenge to his reshoring narrative — a sign that global companies won’t always toe the political line when strategic economics are at stake.
Apple’s India Play — More Than Just Manufacturing
Apple’s $1.5 billion Foxconn investment signals far more than production expansion — it marks a strategic pivot in global supply chains and a bold rebuke to political pressure. Tim Cook’s decision to stay the course in India reflects both confidence in the country’s potential and a determination to future-proof Apple’s manufacturing empire.
In the long run, the move may redefine not just Apple’s supply network, but also India’s place in the global tech ecosystem — regardless of presidential preferences.
(With inputs from agencies)
