Apple Suppliers Plan Major Production Move To India

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Harsirat Kaur
Harsirat Kaur
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Apple is one of the biggest multinational technology companies in the world. Its products have the standard, prestige, and durability. It is also one of the largest companies that believe in diversification. Apple took one such decision recently to expand its operational business. Its suppliers have decided to shift the production from China to India.

China has gathered a lot of resentment, intangibly plus tangibly. Tangible adversities include restrictions on Chinese goods, taking away the contracts for manufacturing in China, etc. Apple had at least 95% of the manufacture of its products in China before the outbreak of COVID-19. The US government changed multiple rules to tighten their relationships with China. This has an adverse impact on the Chinese economy. So, the companies that had their base in China had to alter and re-establish their manufacturing rules.

Apple’s Production Move to India

A contract manufacturer for tech giant Apple is shifting six production lines to India. It also plans to export Apple iPhones worth $5 billion from India. This comes as good news to the Indian economy. It will create a strong base in India, and increase the productivity and national income of India.

This move is planned to save the company from any future changes in the governmental laws regarding import-export. Apart from the political gains that India will reap, there are also personal gains that people from the labor market can receive. According to some sources, the establishment of the manufacturing unit in India will generate approximately 55,000 jobs for local people in India per year. This will push up the employment rates, as well as the per capita income.

Apple supplier to move pruduction to India
Source: MacRumors

Ministerial Reactions

Union Telecom and Information Technology Minister Ravi Shankar Prasad said on Saturday that along with Apple’s contract manufacturer, 22 domestic and international firms such as Samsung, Lava, Dixon, etc. have proposed to set up mobile phones production units in India. They will have a worth of Rs. Eleven lakh crores in the coming five years.

“There will be huge (mobile phone) production of around Rs 11 lakh crore, a huge export of around Rs 7 lakh crore. And great employment opportunity for 3 lakh direct and 9 lakh indirect people. I thank all the companies that have applied,” Prasad said in a statement.

The government is pleased to be getting lined up proposals from various nations like the US, Taiwan, South Korea, Germany, etc. It has motivated to increase production-linked investment (PLI). This scheme has already exceeded the government’s expectations.

Prospects of Apple suppliers production shift plan

Prodtcion of Apple's iphones to start in India
India has the second-largest market for smartphones.
Source: The Indian Express

International companies with proposals in India are Samsung, Foxconn Hon Hai, Rising Star, Wistron, and Pegatron. India has the second-largest smartphone market. Apple’s decision stands to profit for the economy. This will also motivate the Prime minister’s ‘Made in India’ initiative.

Time will tell how the country perceives this move and what will Apple’s relationship with India provide for the laymen. 

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