iPhone assembly in India gets a boost from removed import fees on parts

For years we’ve been hearing how Apple wants to cut its reliance on China for manufacturing iPhones, and how India would be the next China – in this regard. And while the company has steadily increased the number of iPhones it produces in India, it’s nowhere near the number of iPhones still made in China. But the race could get closer.

That’s because India has now removed import duties on some components “key to producing mobile phones” – PCBs, parts of camera modules, and USB cables. This is obviously aimed to boost local production of smartphones, and the move should benefit Apple and Xiaomi.

India has already become the world’s second-largest phone manufacturing country, but of course China is still quite far ahead. That said, India’s electronics production has more than doubled in the last six years, to reach $115 billion in 2024.

And now India is looking to take advantage of US-China trade tensions to increase its own share and standing in the global supply chains. According to Reuters, India’s complicated tariff structure “is often cited as a deterrent for efficient local production and a cause of disputes”. This might be a step on the way to making things less complicated and thus paving the way for Apple and Xiaomi and others to move more of their Chinese production into India.

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