New Delhi, May 16 -- While Indian officials from the commerce ministry are banking on the competitive ecosystem and strong policy support to convince Apple Inc. to stay and expand its manufacturing base in India, trade experts argue that the tech giant should seriously consider bringing iPhone assembly back to the US. They believe this move would not only create large-scale employment in America but could also trigger long-term gains for India by pushing it toward more meaningful industrial development.

Contrary to concerns that India would lose out, the Global Trade Research Institute (GTRI), a trade think tank, in its report released on Friday, suggested the exit of iPhone assembly might actually benefit the country. At present, India ...