May 16, 2025 | By Globalbiz Outlook News Desk: Apple Inc. has reassured the Indian government that its investment and manufacturing plans in India remain firmly on track, despite U.S. President Donald Trump voiced concerns over the tech giant’s increasing production presence in the South Asian nation.
During a business roundtable held in Doha, Qatar, on May 15, 2025, President Trump publicly criticized Apple CEO Tim Cook over the company’s deepening engagement with India’s manufacturing ecosystem. The former president, who remains an influential figure in U.S. economic and political discourse, urged Apple to prioritize domestic production and job creation over international expansion.
“I had a little problem with Tim Cook yesterday… You are coming here [to the U.S.] with $500 billion, and you are building all over India. I don’t want you to build in India,” Trump stated at the event. “You can build in India if you want to care for India.”
Despite the criticism, Apple has reportedly assured Indian officials that there will be no disruption to its operations or future investment plans in India. According to CNBC-TV18, which cited government sources, Apple emphasized its long-term commitment to the Indian market and manufacturing ecosystem.
India’s Growing Importance in Apple’s Supply Chain
India’s role in Apple’s global supply chain has steadily increased over recent years, especially as the tech company seeks to diversify production away from China. According to Counterpoint Research, approximately 16% of the iPhones assembled globally in 2024 were made in India—a figure expected to rise to 20% in 2025.
“All the stars are aligned for India to be the alternate destination to China,” said Neil Shah, Vice President at Counterpoint Research. “Looking at Apple’s manufacturing strategy for iPhones, they have mostly focused on countries where they have advantages for manufacturing: geographical advantage, government incentives and costs, and where they have good domestic demand.”
Apple’s manufacturing shift toward India comes amid the continued imposition of tariffs on Chinese imports by the U.S. government. To mitigate the financial impacts of such trade policies, Apple has strategically expanded production to regions like India, which offer not only cost advantages but also a supportive policy environment and an increasingly skilled labor force.
Robust Revenue Growth and Market Confidence
In addition to manufacturing, India has become a high-growth market for Apple’s products. According to a report by the Economic Times, Apple’s wholesale revenue from iPhones in India surged by 28% in the March quarter of 2025, reaching between $2.53 billion and $2.92 billion. The increase was attributed to record-breaking sales and a growing appetite among Indian consumers for premium smartphones.
This dual growth—both in manufacturing and market demand—has fortified Apple’s strategic interest in India as a cornerstone of its global operations.
U.S. Investment Still a Priority
While Trump criticized Apple’s global expansion, it is important to note that the company has simultaneously pledged substantial investments in the United States. In February 2025, Apple announced a massive $500 billion commitment to support high-skilled manufacturing, AI development, silicon engineering, and workforce training programs across the U.S. over the next four years.
This investment highlights Apple’s balanced approach to both international growth and domestic economic contribution. However, Trump remains focused on ensuring that U.S. companies prioritize creating jobs within the country, often making international manufacturing a politically sensitive topic.
Trade Relations in Focus
Trump also raised concerns over India’s trade policies during the same roundtable event, describing the country as “one of the highest-tariff nations in the world.” “It was tough to sell in India,” he said. “But now they’ve offered us a deal where they are willing to charge no tariff, literally.”
In response, India’s External Affairs Minister Dr. S. Jaishankar emphasized the need for any trade agreement to be equitable and beneficial to both sides. “Any trade deal must be mutually beneficial,” Jaishankar said, adding that “until that is achieved, any judgment will be premature.”
The Road Ahead
Apple’s continued investment in India comes at a time when global technology companies are re-evaluating their supply chains, balancing cost efficiencies with geopolitical considerations. With India emerging as a credible alternative to China for high-volume, high-quality manufacturing, the South Asian giant is set to play a pivotal role in the next phase of global tech manufacturing.
While political pressures in the U.S. may prompt companies like Apple to reaffirm their domestic priorities, it is evident that India’s strategic significance will continue to grow. Apple’s dual investment strategy reflects a broader trend among multinational companies—adopting a “China plus one” approach to mitigate risks and ensure business continuity in a volatile global trade landscape.
In summary, despite sharp words from a former U.S. president, Apple’s message is clear: its commitment to India remains strong and unwavering. With supportive government policies, a growing market, and an increasingly capable workforce, India is poised to be a vital part of Apple’s global strategy for years to come.
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