Apple Likely to Move One Fifth of its Manufacturing From China to India

CIOReviewIndia Team | Monday, 11 May 2020, 09:42 IST

Apple Likely to Move One Fifth of its Manufacturing From China to India

A proposal is being currently examined by Apple about the possibility to shift one fifth of its net manufacturing to India through contract manufacturers. This is supposed to revamp the local manufacturing capabilities with a total production of $40 Bn in the next five years.

Wistron and Foxconn are the two Taiwanese based contract manufacturers that have proposed investments for Apple’s manufacturing in India. This was proposed to Apple last year by the two companies which can be put into effect this year facilitated by the newly released Production Linked Incentive Scheme (PLI) by the central government, as was mentioned by some of the top government ranking officials of the country.

In order to give a boost to the manufacturing smartphones, electronic components and semiconductors, the Union Cabinet Ministry launched three new schemes which are Production-linked incentive scheme (PLI) - Scheme for promoting manufacturing of electronic components and semiconductors'' (SPECS)-Electronics Manufacturing Clusters (EMC) 2.0. The Central government has decided a budget of 40,995 Crore that have to be spent in the next five years under these schemes.

Prime Minister of India, Narendra Modi already had meetings with the senior executives of Apple, Samsung and homegrown phone maker Lava on 28th December, 2019, that immediately kick-started the process of providing incentives in order to attract businesses for hi-tech manufacturing in India.

Apple’s low priced iPhone SE is already getting manufactured by Wistron in this Bengaluru unit and it is also responsible for the assembling of Apple mid range phones like iPhone 6s and 7 models. The company’s second manufacturing unit in the same city will be producing iPhone 7 and 8 models facilitated by the PLI scheme.

On a positive note, the Apple influenced native production in the country will help the country revamp from the financial situation that has been caused by the pandemic shockwave. Major part of the manufacturing sector was on lockdown for more than 1.5 months which has greatly affected the GDP of the country and these schemes are nothing but preventive measures in order to stop further economic distress.

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