Apple is fast diversifying its production to markets like India to minimize the impact of the US-China trade war and COVID-19 crisis. Apple Inc. is planning to participate in a new scheme launched with a $6.7 billion plan by the Indian government, as PM Narendra Modi stepped up efforts to promote electronics manufacturing to boost smartphone, computer products and create more jobs.
Apple Inc. has steadily raised the production of iPhones in India to reduce its dependence on Chinese manufacturing. The Indian government is also preparing to unveil another incentive to boost local manufacturing of IT products including laptops, tablets, and servers. The new performance-linked incentive (PLI) scheme offers monetary benefits to the manufacturers for exports over five years.
Apple is giving a push to manufacturing its products in India with the help of its contract manufacturers like Wistron or Foxconn. iPhone production started in the country in 2017 and has increased manufacturing operations with the help of local units of Foxconn and Wistron. Another contract manufacturer Pegatron also set up a plant in India in 2019 and Foxconn has planned to invest another $1 billion to expand its factory in southern India where Taiwanese manufacturer assembles iPhone for the last two years.
Apple CEO Tim Cook said India is one of the fastest emerging markets for the company and apple would consider making other devices in India too with the help of the Indian government because the sales for locally-manufactured iPhone was double compared to last year. Apple is waiting for another bigger budgetary proposal which is of around Rs 20,000 crores, which is to boost the domestic manufacturing of wearable devices in India. Apple’s move to shift its production to India while eyeing the Indian government’s incentive scheme will help the company to expand its market and India will be able to ensure more jobs at global standards in the country.
