India Needs More Apples

The government must replicate the Apple template to bring the world's top 50 brands into the country

- AKASH PRAKASH

While the jury is still out on many of the production-linked incentive schemes (PLI) introduced by the Indian government, one undeniable success has been the scheme targeting smartphone production. Used largely by Apple, and to a lesser extent by Samsung, this scheme has helped India export over $24 billion worth of smartphones in FY25, up from virtually zero in FY18. Today, India is the world's third-largest smartphone exporter, after China and Vietnam.

Apple now assembles about 20 percent of all iPhones in India, and this percentage is set to keep rising. While local value addition is limited—still in the low double digit, it will increase over time as the component ecosystem slowly comes online.

The success in attracting Apple has been critical. It is now well-documented that Apple, through its training, focus on quality and scale, was critical in helping China build a world-class manufacturing ecosystem. Hopefully, it can do the same for India.

Apple is key in being a leading multinational company (MNC) that is closely tracked. If Apple can eventually source 50–75 million phones from India (worth $50 billion) with its focus on quality and finish, what excuse can any MNC offer its board for why they cannot source from India? Can labor, logistics, or regulations really be that impossible in India if Apple can source this quantum of world-class product from the country? The demonstration effect is huge.