Apple May Widen India Output Beyond iPhones, Google Could Shift From China: Vaishnaw

Electronics and IT Minister Ashwini Vaishnaw said the government expects Apple to widen its manufacturing base in India beyond iPhones, while Google could shift most of its export-focused production away from China to the country. He made these comments while addressing a press conference, as per Moneycontrol.

Responding to reports that Google intends to move device manufacturing out of China, Vaishnaw said the government expects India to capture a large portion of the company's production meant for overseas markets. Reports this week suggested Google plans to stop making Pixel phones, watches and wireless earbuds in China from 2027, shifting output to India and Vietnam instead. Google has not confirmed this plan publicly.

Google first announced its India manufacturing plans in October 2023, starting with the Pixel 8 and working alongside domestic and international partners. At the time, the company called India a priority market and described local production as an early step toward expanding its device manufacturing capacity. Dixon Technologies is among the firms currently assembling Pixel smartphones in the country. By 2025, Google was also working to scale up Pixel production in India and prepare India-made devices for export.

Apple's Larger, Expanding Footprint

Vaishnaw said the government is also working with Apple to extend its India manufacturing beyond the iPhone to a broader range of products. Apple's presence in the country is already far more established, having begun iPhone assembly in 2017 and expanded operations since through suppliers such as Foxconn and Tata Group.

India is projected to account for around 26% of global iPhone production in 2026, based on Counterpoint Research estimates cited by Reuters. The country has also become a key export base for Apple, with a significant share of iPhones made at Foxconn's Indian factories being shipped to the United States. Beyond final assembly, Apple's supplier list shows it already carries out some component manufacturing within India.

New Mobile Manufacturing Scheme

Vaishnaw's remarks came as the government notified its new Mobile Phone Manufacturing Scheme, which follows the production-linked incentive programme for large-scale electronics manufacturing that concluded on March 31, 2026. Approved by the Cabinet in July with an outlay of ₹62,500 crore, the new scheme will run from FY27 to FY31. It offers incentives of 2.25% to 5% on eligible mobile phone sales, along with an additional incentive of up to 1.5% for sourcing specified components and sub-assemblies domestically.

The scheme aims to push India's mobile manufacturing policy further into component-level production and domestic value addition, building on the scale established under the earlier PLI programme.

Government data shows that 99.2% of mobile phones used in India are now manufactured domestically, while domestic value addition in mobile manufacturing stood at 23% in FY24. Smartphones emerged as India's largest individual export product category in FY26.