As Apple pledges $100 bn additional investment in US, likely impact on India

India has become a major base for Apple’s final assembly operations, and one of the key markets from where it exports iPhones to the United States — the country exports nearly 1 in 3 iPhones to the US. If Apple chooses to go deeper on manufacturing in the US, New Delhi could feel some of its effects. The concern is compounded by some of US President Donald Trump’s earlier statements targeting Apple’s production in India and elsewhere.

These events come as Trump has imposed a 50 per cent tariff on imports from India, citing the country’s economic ties with Russia.

Apple’s US manufacturing plans

Apple said it was working with its suppliers to accelerate manufacturing in the US through the new American Manufacturing Programme (AMP). The first AMP partners include Corning, Coherent, GlobalWafers America, Applied Materials, Texas Instruments, Samsung, GlobalFoundries, Amkor, and Broadcom.

“The American Manufacturing Program will help fund a major expansion of Apple’s long-standing partnership with Corning, bringing the world’s largest and most advanced smartphone glass production line to a factory in Harrodsburg, Kentucky. The expansion means that soon, every iPhone and Apple Watch sold around the world will be built with Kentucky-made cover glass. The two companies will also open a new Apple-Corning Innovation Center in Kentucky,” Apple said in a statement.

In July, Apple had committed to buying American-made rare earth magnets from MP Materials. These magnets will become part of Apple devices shipped around the world. The two companies will also establish a cutting-edge rare earth recycling line in California.

Apple supports more than 450,000 jobs with thousands of suppliers and partners across all 50 US states — including significant expansions in Arizona, California, Iowa, Kentucky, Nevada, New York, North Carolina, Oregon, Texas, and Utah.

Likely impact on India

Apple’s manufacturing push in the US seems to focus on creating a more high-end supplier base in the country. Its current production operations in India are centred largely around assembly of the final product, with a majority of the components coming from places like China and Taiwan. However, India has plans of deepening its supply base, and looking to attract more suppliers to the country. That could possibly be impacted by Apple’s move in the short term.

The Indian Express had earlier reported that India’s share in US smartphone imports surged to nearly 36 per cent in the first five months of 2025, from about 11 per cent in 2024. China, which continues to dominate the product category, saw its share drop from 82 per cent to 49 per cent over the same period.

While smartphones are India’s top export to the US by value, Trump has threatened a 25 per cent tariff on Indian-made Apple iPhones, which account for the bulk of mobile phone exports to the country. Days after he announced reciprocal tariffs on a number of countries in April, the US administration had exempted phones, computers and other electronic products, even as the threat of a renewed tariff threat on these items looms large.