According to a Bloomberg’s report, Apple doubled its iPhone assembly in India to $14 billion in the previous fiscal year. It has been reported that approximately 14% of Apple’s flagship gadgets are being made in India. This increase is being perceived as an effort by the tech giant to reduce its dependency on China.
From China To India
Even though China is at present Apple’s primary overseas market and hub for iPhone production. However, Apple’s sales in China are dropping as a result of growing competition from rivals like Huawei Technologies Co. and a growing prohibition on the use of foreign technology in workplace.
Amidst all this, the increase in manufacturing is a big victory for Prime Minister Modi led government. For 10 years ago, iPhone manufacturing was practically negligible in India. Since assuming office in 2014, Prime Minister Modi has taken multiple steps to strengthen the manufacturing capabilities in India. The production linked incentive schemes, improved regulatory framework and taxation practices acts as an incentives for companies like Apple to establish their manufacturing units here.
Surge in Manufacturing
The government claims that this has led to the direct creation of 150,000 jobs at Apple’s suppliers. For the fiscal year that ended in March 2024, Foxconn Technology Group and Pegatron Corp. constructed approximately 67% and 17%, respectively, of the iPhones manufactured in India. The Wistron Corp.’s Karnataka plant produced the remaining ones and later on the Tata Group acquired them last year. Tata intends to build one of the nation’s biggest facilities for assembling iPhones.
Overall, the PLI scheme, has led to increased investments worth Rs. 1.03 Lakh crore till 2023. It has also resulted in production/ sales of Rs. 8.61 lakh crore and employment generation of over 6.78 lakh. Even though the PLI scheme beneficiaries account for approximately 20 % of the market share. They have contributed approximately 82% to mobile phone exports during FY 2022-23. Since 202-21, the Production of mobile phones increased by more than 125% and export of Mobile Phones has increased approximately 4 times.
In fact, recently, the United States ambassador to India, Eric Garcetti, called on investors and entrepreneurs to embrace India as the future. As reported by ANI, Garcetti said, “If you want to see the future, come to India.”
“If you want to work on the future, come to India. I have the great privilege of being able to do that every single day as the leader of the US Mission.”
He made this remark at “Impact & Innovation: 25 Years of Making Development a Ground Reality” event in Delhi on April 9.