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NEW DELHI: India’s electronics manufacturing sector is witnessing a remarkable shift, with homegrown Tata Electronics rapidly establishing itself as a formidable player in Apple’s global supply chain.
In a significant development underscoring the success of government incentives and corporate ambition, Tata has edged ahead of long-time leader Foxconn in the value of iPhones exported from India over the five-year Production Linked Incentive (PLI) scheme period, according to data first reported by the Business Standard.
Rapid Ascent Through Strategic Moves
Tata Electronics entered the iPhone assembly business relatively late compared to its Taiwanese counterparts. Foxconn began operations in India as early as 2019, well before the PLI scheme gained momentum.
In contrast, Tata made its decisive entry by acquiring Wistron’s India operations in November 2023 and subsequently securing a 60% stake in Pegatron’s Indian unit in 2024.
This aggressive expansion has yielded impressive results. According to vendor data submitted to the government, Tata Electronics assembled and exported iPhones valued at $26.3 billion between FY22 and FY26. This figure narrowly surpasses Foxconn’s export value of $25.6 billion over the same period.
Exports have been the dominant force in Apple’s India manufacturing push, accounting for approximately 73.6% of the total value of iPhones assembled in the country during these years. The remaining share catered to the growing domestic market.
Narrowing the Overall Gap
While Tata leads in exports, Foxconn maintains an edge in total production value when including devices assembled for the Indian market.
Foxconn’s overall iPhone production reached $38 billion, compared to Tata’s $35.5 billion, giving the latter a substantial 46.01% share in the combined output of the two major players.
This difference stems largely from Foxconn’s stronger domestic footprint. It assembled iPhones worth $12.4 billion for sale within India, nearly double Tata’s domestic production value of $6.3 billion.
Apple’s India sales have expanded significantly, with iPhones valued at $18.6 billion (around ₹1,76,680 crore) sold domestically during the PLI period, fueled by exchange offers, discounts, and rising consumer appetite for premium devices.
Apple’s China-Plus Strategy and PLI Impact
Apple’s accelerated diversification away from China has been a key driver. Geopolitical tensions, supply chain vulnerabilities exposed during the pandemic, and trade dynamics have prompted the company to ramp up production in India.
The PLI scheme, designed to boost local manufacturing with financial incentives tied to incremental production, has played a pivotal role in attracting investments and scaling operations.
Tata’s rise reflects not just assembly prowess but a deeper integration into the ecosystem. The group has invested in expanding facilities, workforce (reportedly reaching around 75,000 at one point), and even component manufacturing. This vertical push helps reduce dependency on imported parts and strengthens India’s position in the global value chain.
Market research firms have noted Tata’s growing share, with expectations that its manufacturing capacity could soon account for a significant portion, potentially approaching half of India’s total iPhone output in the coming years. This positions India as an increasingly vital hub, especially for models destined for markets like the United States.
Implications for India’s Manufacturing Ambitions
This milestone carries weight beyond corporate rivalry. It highlights the maturation of India’s electronics sector, moving from basic assembly toward higher-value contributions. Success here could inspire further localization, job creation, and technology transfer, aligning with national goals of self-reliance (Atmanirbhar Bharat).
Challenges remain, including building a robust local supplier base, addressing infrastructure needs, and navigating environmental and operational issues that occasionally arise with rapid industrial scaling. Nonetheless, the trajectory signals confidence in India’s potential as a competitive alternative manufacturing destination.
Analysts view this as part of a larger pattern: Apple’s commitment to India deepening even as it maintains substantial Chinese production. For Tata Group, the achievement validates its strategy of entering high-tech manufacturing through acquisitions and organic growth, potentially opening doors to other global clients.
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