Niti Aayog's chief executive officer BVR Subrahmanyam said India offers a cheaper alternative to Apple's iPhone manufacturing plans compared to most other countries.
"What the tariff will be, is uncertain. Given the dynamics, we will be a cheap place to manufacture," he said during a press briefing after the 10th Governing Council meeting of the top policy think tank.
Recently, the US-based tech giant was in news for considering moving its production facilities for America-bound iPhones to India from China after President Donald Trump announced tariffs on imports. The tariffs, announced earlier, were higher on China compared to India, which made Apple consider shifting its manufacturing plants.
But this further concerned Trump, who threatened to impose a tariff of 25 percent on Apple if it decides to manufacture its phones in India or anywhere else.
"I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25 percent must be paid by Apple to the U.S. Thank you for your attention to this matter!" he wrote on Truth Social.
With Apple’s supply chain deeply entrenched in Asia, shifting production stateside would result in significantly higher costs, longer lead times, and ultimately, more expensive iPhones. Despite President Donald Trump’s warning to Apple to shift production to the US, it may not be economically prudent for the iPhone maker, mainly because of price and ecosystem concerns.
