India is no longer just an emerging market, but has become a strong production center for Apple. The supply of iPhone from India has set a new record in the year 2025. The needs of a big market like America have now become largely dependent on India. Meanwhile, US President Donald Trump’s statement imposing 500 percent tariff is in the news, which has raised many questions.
The biggest question is that if such a heavy tax is imposed on iPhones coming from India, then who will it affect – India or American customers?
India is becoming Apple’s new power house
In the year 2025, iPhone exports from India have crossed Rs 2.03 lakh crore, which is equivalent to about 23 billion dollars. This figure is about 85 percent more than last year. The PLI (Production Linked Incentive) scheme of the Government of India has a big role behind this sharp increase. Apple has rapidly increased production in India while reducing dependence on China. iPhones made in the plants of companies like Foxconn and Tata are now being sent directly to America and other countries. With this, India has become an important part of Apple’s global supply chain.
America’s iPhone needs and India’s role
Today, a large part of the iPhones sold in America comes from India. In October 2025 alone, India exported smartphones worth about $1.47 billion to America, which is almost three times compared to last year. Between April and October 2025, this figure reached $10.78 billion. About 70 percent of American smartphone imports are linked to India in some way or the other. In such a situation, it is not easy for America to suddenly become dependent on another country. Changing the supply chain involves time, money and risk.
What will be the real impact of 500% tariff?
If America imposes a 500 percent tariff on iPhones coming from India, it will have a direct impact on prices. The supply from India is coming in such a large quantity that it is almost impossible to fulfill it immediately from any other country. In such a situation, companies will pass the burden of increased tax on the customers. This means that iPhone prices may increase rapidly in America. The phone which is available at normal price today can be many times more expensive. This clearly means that American consumers will have to bear the loss more than Indian consumers.
India has taken a big leap in mobile manufacturing in the last few years. At present, five big iPhone assembly plants are working in the country and about 45 suppliers are associated with Apple. India has now become the world’s second largest mobile phone manufacturer. Showing confidence in India, Apple has also started manufacturing all the models of iPhone 17 here, so that the demand around the world can be met. This is the reason why it is not easy for America to ignore India.
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