In the modern tech race, it’s not just innovation that matters—it’s location. And the Indian government appears to have finally recognized that when it comes to electronics—particularly smartphones—the real power lies not in merely assembling the final product but in owning the core components that power them.
If recent developments are any indication, the Modi administration is preparing for a significant shift in its electronics strategy—transitioning from “Make in India” to “Make India the Maker.” Sources close to the matter reveal that the Centre is drafting a comprehensive plan to scale domestic production of critical electronic components, especially those crucial to the global smartphone ecosystem. Yes, even the mighty iPhone is in the frame.
The Apple of Our Eyes
India already hosts iPhone assembly lines, thanks to the efforts of Tata Electronics and Bharat FIH (Foxconn’s local arm). But make no mistake: the critical innards of those iconic phones—chips, sensors, display drivers—are still largely imported. It’s like preparing a gourmet dish where someone else supplies the ingredients and spices. You may plate it beautifully, but you don’t own the recipe.
The government is now building a policy framework to incentivize companies to manufacture those high-value components within India. If executed well, this could reposition India in the global electronics value chain—a transformation on the scale of what Shenzhen achieved in the early 2000s.
Sources say the Ministry of Electronics and Information Technology (MeitY) is exploring bonded warehouse zones with special import duty exemptions. This logistical move may seem niche, but it could streamline inventory management, reduce import dependency, and boost cost competitiveness—key to attracting global investment.
America’s Tariff Tantrum, India’s Opening
This push comes at a pivotal geopolitical moment. With the U.S. imposing reciprocal tariffs on Chinese electronics last week in response to trade imbalances, companies heavily reliant on Chinese manufacturing are growing uneasy. Exporting electronics to America is becoming costlier, prompting global firms to seek a neutral, dependable base.
Enter India—a democracy with scale, skilled labour, and a strategic pivot toward Western-aligned trade frameworks. “It marks a key inflection point in India’s electronics journey,” says a senior official involved in the consultations. “India’s rise in the global supply chain is no longer a matter of if—but when.”
Industry estimates suggest iPhone exports from India to the U.S. now exceed $1 billion annually—a figure poised to grow as Apple deepens its manufacturing presence here. With tariffs inflating costs for Chinese goods, India is emerging not just as an alternative—but as an imperative.
Follow the Value, Not Just the Volume
But let’s not celebrate export volumes alone. India’s Achilles heel remains low value addition. While the country exported $14.5 billion worth of electronics last month, only about 10–15% contributed meaningfully to GDP. The rest? Mostly low-margin assembly work.
The new ambition is to boost this share significantly. NITI Aayog estimates that with the right policy mix, India’s electronics sector could generate $275 billion in revenue by FY30. More crucially, the government aims to quadruple domestic value addition from the current $10 billion to around $40 billion in five years. That’s more than an economic number—it’s a signal of industrial self-reliance.
The Risks of Playing Catch-Up
Yet, the road ahead isn’t frictionless. India still wrestles with infrastructure bottlenecks, regulatory unpredictability, and global economic shocks that can derail even well-conceived policies.
Moreover, the “China Plus One” strategy adopted by multinationals is driven not by loyalty but by logistics. India, despite its democratic appeal, must still prove its mettle in consistency—across cost, quality, and delivery timelines.
Apple, for example, has not confirmed any commitment to local component manufacturing. For now, its focus appears limited to expanding assembly operations through partners. But to become irreplaceable in the global tech ecosystem, India must graduate from screwdriver factories to semiconductor fabs, nano-sensor labs, and robust R&D clusters.
From Assembly to Ascent
So, is India ready to evolve from a glorified assembly hub to a center of innovation-led manufacturing? The answer, as with most policy ambitions, lies in execution. The blueprint is strong, the intent is aligned with global trends, and the timing couldn't be more fortuitous.
But the outcome will depend on how fast India can build not just factories—but entire ecosystems. If successful, we won’t just be assembling the world’s gadgets—we’ll be designing their futures.