Apple and Google to expand manufacturing footprint in India

Apple and Google are expected to expand their manufacturing footprints in India as part of a broader government initiative to strengthen the domestic mobile ecosystem. Electronics and IT Minister Ashwini Vaishnaw stated that the Indian government is working with Apple to broaden its operations beyond iPhone assembly, potentially including component manufacturing and design capabilities.

Google is also anticipated to shift a significant portion of its export-oriented production from China to India. While Google has already begun manufacturing Pixel smartphones in the country, reports suggest the company may move production of Pixel smartphones, watches, and wireless earbuds to India and Vietnam by 2027.

To support these shifts, the Indian government has introduced the Mobile Phone Manufacturing Scheme (MPMS), running from FY27 to FY31 with an outlay of Rs 62,500 crore. The scheme provides incentives for mobile phone sales and encourages the domestic sourcing of key components such as batteries, camera modules, and display modules. The initiative also aims to foster local intellectual property and design capabilities, offering a 3% incentive on R&D programs to boost global competitiveness.