In a significant boost to India’s electronics manufacturing capabilities, Apple’s iPhone suppliers in India have reportedly crossed the 20% Domestic Value Addition (DVA) threshold across various iPhone models. This milestone marks a major achievement for the country’s electronics and smartphone ecosystem and aligns with the Indian government’s Make in India and Production Linked Incentive (PLI) schemes aimed at boosting local manufacturing and exports.
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ToggleApple’s expanding manufacturing footprint in India is being driven by its global contract manufacturers, including Foxconn, Tata Electronics, Dixon Technologies, Pegatron, and Wistron (which has been acquired by Tata Electronics). These suppliers are playing a pivotal role in not only assembling iPhones but also increasing the use of locally sourced components, thereby raising India’s share in Apple’s global supply chain.
Crossing the 20% DVA mark means that a fifth of the components or manufacturing value in iPhones assembled in India are now either sourced domestically or processed within the country. This includes a mix of mechanical parts, enclosures, batteries, chargers, and other critical components, as well as packaging and testing services.
In addition to working with its existing suppliers, Apple is in advanced talks with India’s Murugappa Group and Titan Company to source camera modules for its iPhones—one of the most valuable and technologically advanced components of modern smartphones. These discussions indicate Apple’s growing confidence in India’s precision manufacturing capabilities and its desire to localize even high-value components.
Further, Dixon Technologies, already a key player in India’s electronics ecosystem, is in talks with Apple to expand its iPhone assembly operations, potentially increasing production capacity and enhancing Apple’s ability to meet both domestic and export demands from India.
India has become a key part of Apple’s strategy to diversify its supply chain outside China, especially amid global geopolitical tensions and supply chain vulnerabilities. In recent years, Apple has significantly ramped up its manufacturing activities in India, exporting billions of dollars worth of iPhones annually. In FY24 alone, Apple exported over $12 billion worth of iPhones from India.
The increased DVA not only benefits Apple by reducing costs and enhancing supply chain resilience, but it also significantly contributes to job creation, skill development, and technology transfer within the country.
The achievement of over 20% Domestic Value Addition by Apple’s iPhone suppliers in India is a major milestone in India’s journey toward becoming a global electronics manufacturing hub. With Apple deepening its partnerships with Indian firms like Murugappa Group, Titan, and Dixon, the country is poised to play an even more strategic role in the tech giant’s global operations.
As Apple continues to scale its manufacturing ecosystem in India, the future looks promising for both local suppliers and the broader Make in India initiative, driving innovation, exports, and economic growth in one of the world’s fastest-growing smartphone markets.