In a drive for its ‘Make in India’ campaign, the Centre has requested that Apple generate annual industrial output worth $50 billion in India over the next 5-6 years. This would include expanding its domestically manufactured product line beyond iPhones to include Macbooks, iPads, AirPods, and smartwatches.
At a high-level conference between top government officials and senior Apple functionaries, the Tim Cook-led corporation was asked to build India as a global sourcing base that would be used to export fully-built products around the world, similar to what is already being achieved in China.
“The meeting with the Apple officials happened recently, where senior members of the government – including a top minister – were present,” a source said.
According to them, the government told Apple that India is creating an enabling environment to boost electronics manufacturing in the nation, with a focus on exports.
Despite the fact that Apple’s key production partners, the Taiwanese three of Foxconn, Wistron, and Pegatron, have set up shop in India, the country’s manufacturing capacity pales in comparison to the company’s global requirements.
On the other hand, China produces the majority of Apple’s items, accounting for around 95% of the company’s total output. Furthermore, Foxconn and Wistron currently produce for Apple in India, though the amounts are “near zero” in comparison to what they do in China.
While some of the company’s production in India is exported, some products in its portfolio are not manufactured in India and are instead imported. Only the iPhone is currently manufactured in India, however the iPhone 13 is not.
“The enabling environment includes production-linked incentive (PLI) schemes to encourage companies to invest in, and grow, manufacturing in India. Also, capital subsidy plans are being given out, such as the one allotted for kickstarting semiconductor manufacturing where the government has extended a support of $10 billion for those willing to invest,” the source added.