Narrowing the Gap Between Component Imports and Exports
Apple is on the cusp of becoming a net foreign exchange earner in India, narrowingly closing the gap between its imported component bill and the export value of finished iPhones. For the fiscal year ending March 31, 2026 (FY26), Apple’s total iPhone production value in India reached approximately $26 billion. Of this, the company exported iPhones worth $21.5 billion, representing 83% of its local production value. The import bill for components and inputs stood at $22.3 billion, leaving a net deficit of just $800 million.
This data highlights a dramatic shift in Apple’s India strategy. In FY22, Apple exported only 60% of the value of its locally assembled devices. The Ministry of Electronics and Information Technology (Meity) expects Apple to achieve ‘forex-neutral’ status in the near term as it increases local component sourcing and value addition. Reaching an export value share of 85% is considered the key tipping point for Apple to become a net foreign exchange contributor, a milestone expected in FY27.
Local Value Addition and Macroeconomic Headwinds
Apple’s progress towards a forex-positive model is driven by its manufacturing partners, including Foxconn, Pegatron, and Tata Electronics, who are aggressively expanding their domestic assembly capacities. However, Apple is currently navigating a challenging environment in India characterized by rising component costs—especially for memory chips—and currency depreciation. These factors have led analysts to lower domestic growth projections for iPhone shipments, shifting from double-digit forecasts to flat or single-digit growth for the Indian market this year, even as exports remain highly robust.
