In a significant boost to its manufacturing ambitions in India, Apple stands to benefit substantially from the Indian government’s decision to eliminate import tariffs on several critical components used in mobile phones and electronic devices.
The move, announced on Wednesday, removes the existing 7.5% and 5% levies on parts essential for producing wireless charging modules for smartphones, displays for medical devices and automobiles, and lithium-ion cells. The exemptions will remain in effect until March 31, 2029.
India has explicitly positioned the policy change as a way to support major players like Apple, which has aggressively expanded its production footprint in the country over the past several years. The tech giant assembles millions of iPhones annually through partners such as Foxconn and Pegatron, with a growing share of its global supply chain shifting toward India.
“This should boost cost competitiveness, domestic value addition and localization of high-value smartphone and electronics manufacturing,” Manoj Mishra, a partner at Grant Thornton Bharat, told Reuters. He added that the lithium-ion cell exemption could particularly spur investment in domestic battery production for both electronics and electric vehicles.
Apple’s India Momentum
Apple has made India a cornerstone of its diversification strategy away from heavy reliance on China. The company opened its first retail store in the country in 2025 and has seen strong growth in both local sales and exports. iPhone production in India has scaled rapidly, with premium models increasingly manufactured locally.
By reducing input costs on key components, the duty removal lowers the financial burden on Apple’s suppliers, potentially accelerating further localisation efforts. Lower costs could improve margins on India-made iPhones or enable more competitive pricing in both the domestic market and for exports.
India’s broader electronics push aligns perfectly with Apple’s goals. The country aims to expand its electronics manufacturing sector to $500 billion by fiscal year 2030. Smartphone production has already surged 28-fold over the last decade, reaching 5.45 trillion rupees ($57 billion) in 2024/25.
Strategic Context
The revised tariff policy comes amid global supply chain uncertainties and ongoing efforts by multinationals to build more resilient manufacturing networks. For Apple, enhanced incentives in India support its long-term plan to increase the share of iPhones made outside China while tapping into one of the world’s fastest-growing premium smartphone markets.
Analysts expect the duty cuts to encourage deeper ecosystem development, including greater local sourcing of components. This could help Apple and its suppliers achieve higher levels of domestic value addition, a key requirement under India’s production-linked incentive (PLI) schemes that have already channeled billions into iPhone manufacturing.
MacDailyNews Take: This tariff exemption on wireless charging modules is especially timely and relevant for Apple, as MagSafe and its related magnetic ecosystem technologies sit at the very heart of the company’s accessory lineup and future product roadmap. Anything that lowers the cost and encourages deeper localization of these components in India is a clear win for Cupertino.
As India smartly continues to fine-tune its policies to court high-tech manufacturing investment, moves like this import tariff removal only strengthen the country’s growing appeal as a premier production hub. For Apple, the timing couldn’t be better. It further bolsters the company’s already impressive momentum in a market where it has consistently gained share, while accelerating and solidifying its critical supply chain diversification efforts away from over-reliance on any single region.
Bottom line, this is another smart, pragmatic step that plays directly into Apple’s strengths — and the company is well-positioned to capitalize on it.
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