India is rapidly expanding its electronics manufacturing under the Production Linked Incentive (PLI) scheme, with Apple assembling iPhones at Foxconn and Tata plants in Tamil Nadu. India-assembled electronics face only the 10% Section 122 global surcharge. As more OEMs shift assembly from China to India, the tariff savings of 50 percentage points on ICs and 25 points on passives are a material driver of supply chain restructuring.
On a $100,000 BOM, China incurs $60,000 in duty vs $10,000 from India — a difference of $50,000 per order.
| Source | Duty Rate | Duty Amount | Landed Cost |
|---|---|---|---|
| 🇨🇳 China | 60% | $60,000 | $160,000 |
| 🇮🇳 India | 10% | $10,000 | $110,000 |
| Savings from India | $50,000 | $50,000 | |
* Estimate for electronics HTS chapters 8541–8542. Actual duty depends on specific HTS code, MPF, HMF, and customs value.Calculate exact duty →
Yes. iPhones assembled in Tamil Nadu (at Foxconn Sriperumbudur and Tata Electronics Hosur facilities) qualify as India-origin under US customs substantial transformation rules. Indian-assembled iPhones are subject to the 10% Section 122 surcharge, versus 60% for China-assembled variants — a significant cost factor for US Apple channel partners.
India's PLI scheme provides cash incentives (typically 4–6% of incremental sales) to electronics manufacturers that increase domestic production. It has attracted Apple, Samsung, Foxconn, and many others. PLI makes India more cost-competitive with China for assembly operations, especially when combined with the 50-point tariff advantage for US-market goods.
Not yet at scale. India's PCB industry is substantially smaller than China's and cannot match China's multilayer PCB capability or pricing. Most India-assembled electronics still use Chinese PCBs. However, the Indian government has set PCB manufacturing incentives and Foxconn has announced PCB investments in India.
India is most competitive for final assembly of smartphones, tablets, wearables, and set-top boxes — products where labor cost and market access matter more than component depth. Consumer electronics OEMs like Dixon and Optiemus are expanding rapidly. India is less competitive than China for semiconductors, PCBs, and component manufacturing.
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