Industry leaders have raised strong concerns over US President Donald Trump’s recent remarks urging Apple to limit its expansion in India, stating that manufacturing iPhones in the United States instead of India could triple production costs.
On Thursday, President Donald Trump stated that he had discussed with Apple CEO Tim Cook the possibility of reducing the company’s operations in India. The remark has sparked strong responses from industry experts, who argue that such a move would be economically unfeasible.
Prashant Girbane, Director General of the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA), pointed out the substantial cost implications. “If Apple were to shift its manufacturing base from India or China to the US, the cost of a single iPhone could rise from $1,000 to as much as $3,000. The question is – are American consumers prepared to pay that price?” he asked.
Girbane further clarified that Apple’s decision to increase manufacturing in India was a strategic effort to diversify its supply chain away from China, not a withdrawal of investment from the United States. “Currently, 80 per cent of Apple’s production is based in China. Shifting part of this to India strengthens the supply chain and reduces dependence on one geopolitical partner,” he added.
Sharing a similar viewpoint, NK Goyal, Chairman of the Telecom Equipment Manufacturers Association (TEMA), advised against reacting hastily to political remarks. “We’ve learned not to react too quickly to such comments. Apple has already exported iPhones worth over $22 billion from India in the past year. With three manufacturing units already operational and two more planned, the company is clearly committed to its Indian operations,” Goyal said.
He warned that relocating away from India could spell financial losses for Apple, especially given the dynamic global tariff environment. “Exiting India would not only mean losing on cost advantages but also navigating uncertain trade restrictions. It would be a commercially unsound decision,” he stated.
Jaideep Ghosh, former Partner at KPMG, highlighted the growing scale of Apple’s Indian ecosystem. “In FY 2025 alone, India produced iPhones worth ₹1.75 lakh crore, up from ₹1.2 lakh crore the previous year. This growth underlines the importance of India in Apple’s global strategy,” he said.
He cautioned that any move away from India would have serious consequences for the Indian economy, particularly in terms of employment. “Setting up iPhone manufacturing in the US is no simple task. Labour costs alone would dramatically inflate production expenses,” Ghosh noted.
