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Apple to shift 6 production lines from China to India

Apple to shift 6 production lines from China to India

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Apple may see nearly 10% of its global manufacturing move to India in the next five years. That’s because its mobile phones could hit an incremental production value of $29 billion over that period under the government’s Production-Linked Incentive scheme.

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Apple s’ vendor Foxconn and Wistron, which already manufacture iPhones in India. Pegatron has applied to the government to eligible under the Production linked Incentive (PLI) scheme. It will also provide some financial incentive to the company.

In a big relocation of China as the part of global business’ effort for derisking of manufacturing bases by modifying supply chains.
Apple is now expecting to shift its six production lines to India. They will export around $5 billion worth of iPhones from India apart from fulfilling to the domestic market.

The vendors may plan to expand the working beyond iPhones to include iPad and even computers and Macbook in the coming years.

It will provide a great boost to the Indian Manufacturing sector and more global tech giants will feel encouraged to shift their manufacturing base to India. In addition to Apple, Samsung Electronics will also be taking part in the government drive to locally manufacture mobile phones.

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Benefits to India

  • This new facility is expected to generate employment opportunities around 55,000. It will be a huge number of Indian job seekers.
  • Vendors may expand ops beyond phones to include iPads, desktop Mac, and Macbook later.
  • This will provide a major leap towards job creation in cutting-edge technologies in India.

China has increased its investigation after the Covid-19 global health crisis. China has tried to control the outbreak in Wuhan. With trade tension already increasing and Beijing’s role under the lens, several global giants are looking to modify their production bases across the world. India has moved in seeking to be part of the new production supply chain.

Also Read: Against a fall of 6.8 per cent in the March- quarter Chinese economy expanded 3.2 per cent in the June quarter