India aims to boost iPhone manufacturing amid U.S.-China tensions

In recent years, India has been making strides to attract more manufacturing companies to its territories. This effort is particularly pronounced in the southern state of Tamil Nadu, where many women are seeking employment opportunities at firms like FoxConn, a key player in iPhone manufacturing for Apple. By catering to women and providing jobs that offer significantly better wages than other sectors, India aims to reduce poverty while boosting its industrial sector. Currently, women constitute around 70% of the workforce at FoxConn's Sriperumbudur plant, as many individuals previously employed in garment factories seek better opportunities. With heightened tensions between the United States and China, India is strategically positioning itself as a viable alternative for companies contemplating exiting China due to the imposition of tariffs by the Trump administration. Analysts suggest that these tariff policies, while initially harsher in Trump's campaign promises, have turned out to be more moderate on China, thus failing to create the urgency anticipated by some Indian officials. Nonetheless, Indian leaders, including Prime Minister Narendra Modi, believe that as more firms look for alternatives, India is set to play a significant role in diversifying global supply chains. Since 2017, some companies have already made the leap from China to India, with FoxConn seen as a prime example of this transition. This strategic shift is also part of a broader trend where various firms have exited China amidst growing anti-China sentiment, especially heightened during the COVID-19 pandemic. Moreover, India aims to boost its portion of iPhone manufacturing significantly, planning to nearly double its current share to 25%. This objective correlates with the larger narrative of enhancing India's manufacturing capabilities while drawing investments amid ongoing adjustments in global trade dynamics. The political landscape in the U.S. also poses both opportunities and challenges for India's ambitions. Trump's trade policies have been perceived as unpredictable, and there are concerns regarding reciprocal tariffs on Indian goods, which could hinder India's attractiveness as a manufacturing hub. Indian officials have scrutinized the current administration's approach and questioned the earlier expectation that companies would necessarily relocate to India as a result of U.S.-China tensions. As the landscape evolves, the crucial question remains: will India emerge as the preferred destination for companies looking to move from China, or will the geopolitical complexities stall its aspirations?