US-China tariff truce may not hit Apple's India plans

Just days after Apple Inc CEO Tim Cook had announced in a post-earnings analyst call that a majority of iPhones for the American market would be airlifted from India starting this quarter, the changing geopolitical scenario has raised question marks over the Cupertino major's plans.

- SURAJEET DAS GUPTA

After a bitter battle, the United States and China recently agreed on a sharp drop in their punitive tariffs for the next 90 days—within which they plan to finalize an agreement.

The government is watching the developments closely, but is not too worried that a tariff truce between the US and China could hurt the chances of India's electronics products on the global stage, according to sources in the Ministry of Electronics and Information Technology (MeitY).

There is no change in Apple Inc's India strategy, said a top source in the government. "It can only be enhanced," an official at MeitY said.

For companies such as Apple, which have over the past few years stepped up manufacturing in India, the decision to shift production away from China was taken pre-tariff, another official pointed out.