Apple is set to significantly ramp up its iPhone manufacturing in India, aiming for 32% of global production and 26% of its production value by the fiscal year 2026-27.

This ambitious expansion follows discussions between Apple, its vendors, and Indian government officials regarding device assembly in the country.

As part of this strategy, the Tata Group is launching a new iPhone manufacturing facility in Hosur, Tamil Nadu, which is expected to create up to 40,000 jobs.

Additionally, Apple plans to start initial manufacturing of the iPhone 17 base model in India, collaborating with a local factory for this production.

This shift in manufacturing strategy comes on the heels of the conclusion of the five-year Production Linked Incentive (PLI) scheme, which aimed to boost local production.

Experts emphasize that to double production in India, the government needs to tackle issues like cost inefficiencies and policy uncertainties.

Apple faces the additional hurdle of meeting value-addition targets of 35-40% by the end of the PLI scheme.

Emerging investment opportunities in India's electronics sector include mobile assembly facilities, component manufacturing, and tech-enabled infrastructure.

Sustainability solutions, such as investments in renewable energy, are also seen as key opportunities as India expands its manufacturing capabilities.

While the growth in electronics manufacturing is promising for India, it could potentially strain trade relations with China, according to officials.

Challenges persist, as India must enhance its cost competitiveness against China and Southeast Asian countries by reducing component tariffs and improving logistics.

The expansion's success will also depend on US trade policies and India's ability to address these operational challenges.