CNBC’s Inseide India Newsletter: Apple has big expansion plans in India – but trump’s tarifs could change that

This report is from this week’s cnbc’s “inside India” newsletter which brings you timely, Insightful news and market commentary on the emerging powerhouse and the big businesses bends Like what you see? You can subscribeHere.

The General Consensus was that Us President Donald Trump and Indian Prime Minister Narendra Modi had a successful meeting in washington last month. What Went Wrong – And why is Apple Caught in the Middle?

To get everyone up to speed – Trade talks seem to be breaking down

Trump has long criticized India for its high tarifs, Among the Highest in Asia. Analysis from barclays shows that weighted average of India’s tarifs on all importants is 11.5%. Another Key Concern for Washington is the Widing Us-India Trade Deficit.

Last Week, India’s Commerce Minister Piyush Goyal Went to Washington to Present Further Concepts, Including Slashing Tariffs on Key Us Imports in the Hopes That, Insa Hopes Exemption from washington’s reciprocal tarifs. However, Trump’s Trade Team does not seem to be budging, per sources close to new delhi. That’s raising alarm bells.

The Technology Industry Stands to Lose – Particularly Apple Manufactures Roughly 15% of Its Iphones in India, According to Bank of america Analyst Estimates.

Finished Smartphones Entering India Currently Face A 16%-20%Tarif, whereas tarifs on Indian phones sold into the US are at 0%, according to barclays.

“If the Indian Exports of Smartphones, which have picked up recently-We to face similar tarifs in the us, it would deal an early life-sky blow to the (Indian) Electronics, Reversesing the (Indian) Electronics, Reverse Entre China+1 Narravet, “According to Venugopal Garre, Bernsstein’s Head of India Research.

Garre believes that the additional cost of tariffs will make Indian Electronics, Including the iphones manufactured in the country, less competivity compared to devices manufacturely in town.

Rejuvenating India’s manufacturing sector

Bank of America Analysts also believe that proposed tarifs on India will likely drive iphones prices up.

This matters. Apple has been the poster child of India’s manufacturing revitalization, seen by many as a case study for how a foreign company can win in the country. Goyal References Apple’s success when pitching us semiconductor companies to expand into India.

Nvidia is currently working with India’s Reliance Industries on AI Research, While AMD and Micron Have Pledged to Expand in India. Apple Ceo Tim Cook, Who has become a strong relationship with modi, Went to the country For the opening of four retail stores in 2023.

India has played an important role in helple diversify its supply chain and become less dependent on China. In addition to iphones, it has been manufacturing other products in the emerging market, include ipads and airpods.

“45% of Apple’s Total Revenue is Built in China, but they want to get down to the 30% level,” said gene munster, managing partner at deepwater asset management, to CNBC Over the PHONE. However, Experts said Higher Tariffs Cold CLLENGE Apple’s Expantion and Reduce the company’s overall return on investment in India.

“My guess is that apple would want to send a message to new delhi to motivate them to negotiate and push for an equal tariff structure,” said patrick oxectivate and Co-founder of TheSixfiveMedia.

CNBC reacted out to apple for comment and has not heard back.

Moorhead has been studying apple’s supply chain and believes it does have the ability to shift some manufacturing do so.

At this point, the only count that is more insulated from Tariffs would be Vietnam, which is likely due to the low trade imbalance beetween the us and vietnam, moorhead told cnbc over the phone.

Minimizing impact of tarifs

There are other options.

When looking at potential strategies technology companies can use to limit the impact of china tarifs, analysts at morgan stanley write that one alternative is to shot China to a 3rd party country before declaring the goods finalized. “

The same could apply to India.

If the trade war picks up speed, technology companies may also be inventivized to not just explore diversify Pivot as needed. IT’s Certainly a big undertaking. Setting up shop in a new country can take three to five years. As Supply Chain Experts Shared with CNBC, It takes time to set up a new plant, build relationships with local suppliers and hire the right talent, all While Getting the Requird Clearances for Local Government.

However, with tariffs increasing an economic weapon of choice, multinationals like apple may have to use their pile of cash to spread out their manufacturing footprint even Evene more China+1 may need to be changed to China+3.

That count Meaning Apple Produce Fewer Phones in India Than Previously Estimated.

Supply Chain Flexibility, While Expensive, Could Be the Key to Weathering the tariff Storm for Apple. What that does to India’s Ambitions of Being the Go-to Destination for Companies Looking to Move Away from China is another matter altogethr.

Inflation in India drops more than expected in February.The country’s Consumer Price Index Came in at 3.61% On Annual Basis, The Country’s Ministry of Statistics and Program Implementation said wedding wedding. Economists Pollled by Reuters Had Expected A Reading of 3.98% for the period. This is the first time since the last summer that inflation has come in below the reserve bank of India’s target of 4% and marks the lowest monthly print since 2024.

Benefits of Listing on India’s National Stock Exchange.Entrepreneurs or Startup Founders Should Seize India’s Advantages and List on India’s National Stock Exchange, The Bourse’s CEO Ashish Kumar Chauhan Said at CNBC ‘ Converge Live Event in Singapore on Wednsday. India is in a place where there’s “a lot of brains, a lot of enterprise and very little capital is required,” he said, and pointed out that thE Indian Market Had the Larget Number of Listings in the World in 2024,

Indusind Bank Urges Calm after Spotting Accounting Discrepancy.The lender informed Indian exchanges on March 10 that it had discovered during an internal review issues Regarding positions on derivatives trading. As a result of the lapse, the bank estimates that its net worth will take a 2.5% hit. However, INDUSIND RASSURED Investors It is Still Well CapitalizedCausing shares to rebound on wedding after plunging tuesday.

Indian stocks Continued their Gains This Week.

As of 11.15 am Local Time on March 13, The Benchmark Nifty 50 Index Had Risen 0.21% While The Broader Sensex Index was 0.15% Higher.

The Benchmark 10-Year Indian Government Bond Yield Edged Down Slightly to 6.708%.

On CNBC tv this week, pramod gubbi, founder of marcellus investment manners, thinks the Indian government’s tax cuts in its recent union budget are not “meaningful enours Consumption stocks. That’s partly decision the country experience “a good three years of strong consumption growth” after the Pandemic, Fueled by Bank Loans to Retail Firms and Consures, which LEDENGEDING Gubbi said. Hence, Consures are saving more to pay off that debt And Pulling Back on Expenditures.

Meanwhile, Maersk North America President Charles Van Der Steene Tells CNBC’s lori Ann Larocco that “Tarifs will never disrupt the supply chain.” While Trade Barriers May Affect One Aspect of the Global Supply Chain, there will be other counties stepping in to make up for that disruption. India, in Particular, Will Retain Its Importance Within The Global Supply Chain being the south asian nation provides companies with production capacity as firms diversified as from China trust of trump tariffs.