Apple and Samsung have announced that 70% of their global production will be relocated to Indian manufacturing corridors, following the introduction of new export incentives by the Indian government. The decision marks a significant shift in global supply chains, with both companies citing improved regulatory conditions and financial benefits as key factors.

Under the production-linked incentive (PLI) scheme, the two tech giants will expand their existing facilities in Tamil Nadu, Karnataka, and Uttar Pradesh. Apple’s contract manufacturers, including Foxconn and Wistron, will now produce the majority of iPhones for export markets from India. Similarly, Samsung will move a substantial portion of its smartphone and electronics assembly from Vietnam and China to its plant in Noida.

The announcement came during the Global Semiconductor and Electronics Summit in New Delhi, where Indian officials highlighted the country’s growing role as an alternative manufacturing hub. The incentives, which include subsidies on capital investment and reduced corporate taxes, are designed to attract foreign investment and reduce dependence on China.

Analysts have described the move as a strategic realignment by both companies to diversify production bases amid geopolitical tensions and rising labour costs in other Asian economies. For India, the shift is expected to create approximately 500,000 direct and indirect jobs over the next five years, according to government estimates.

Apple and Samsung have committed to scaling up local component sourcing, with a target of 60% local content within three years. However, industry experts caution that infrastructure bottlenecks and regulatory hurdles may slow the transition. The Indian government has pledged to address these issues through dedicated industrial corridors and fast-tracked clearances.

The relocation will take place over 18 months, with production ramping up immediately. The move is likely to reduce costs for Apple and Samsung, while also lowering their exposure to trade tariffs and supply chain disruptions.

India’s electronics exports are projected to reach $120 billion by 2026, driven largely by the PLI scheme. The shift by Apple and Samsung is expected to accelerate this growth, positioning India as a key player in global electronics manufacturing.