US tech giant Apple said this month that India would play a major role in making iPhones for the US market.

"A majority of iPhones sold in the US will have India as their country of origin," CEO Tim Cook said earlier in May while announcing the company's latest quarterly results.

He also noted that Vietnam would be producing nearly all iPads, Macs, Apple Watches and AirPods to be sold in the US.

The decision was aimed at mitigating the impact of US President Donald Trump's tariff onslaught on the tech giant's supply chains as well as sales and profit margins.

Apple shifting some more of its iPhone production to India presents not only a big opportunity but also some potential challenges, said Lekha Chakraborty, senior economist at the National Institute of Public Finance and Policy.

"A nuanced analysis reveals potential challenges including cost competitiveness vis-a-vis China, labor market rigidities, and supply chain vulnerabilities," she told DW.

Chakraborty underscored that making iPhones in India is 5-10% more expensive, pointing to costlier parts and

© Deutsche Welle