Home News Apple Vendors Planning To Shift Production Lines From China To India

Apple Vendors Planning To Shift Production Lines From China To India

Apple vendors gearing up to shift their production line to India. It is expected to create job opportunities for around 55,000 people in a year.

It seems Taiwan’s tech manufacturers are looking beyond China to expand their production lines. Apple’s assembly partners who are responsible for mass production and component production are planning to reduce the risk of the supply chain by expanding in India. This step will also allow the manufactures to make prominent cost-cutting in production. The news was firstly reported by the Times of India citing information from the people familiar with the matter.

Foxconn Technology Group, Wistron Corp, and Pegatron Corp are one of the major suppliers for the Cupertino tech giant Apple and the establishment of the production units in India is said to create job opportunities for over 55,000 people in a year.

Reports also claim that Apple is going to serve the domestic market by expanding its tablets and laptops production as well. Shifting the production lines to India might also reduce the price of Apple products in the country. Apple’s assembly partners and Samsung Electronics are among the 22 companies who have taken a pledge to make an investment of around 110 billion rupees ($1.47 billion) for setting up mobile manufacturing units and assembly lines in the country. 

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Ravi Shankar Prasad, Indian Minister of Electronics and Information Technology recently mentioned in a press conference that Taiwan’s Foxconn Technology Group, Wistron Corp, and Pegatron Corp, all iPhone assemblers are selected under a production-linked incentive plan. He also suggested that this initiative will boost the value of smartphone export up to 11.5 trillion rupees in the next five years.

“Atmanirbhar Bharat is not against any country, it is India positive. The plan is to make India a big hub of electronic manufacturing global supply chain. India being a major economy of the world would also reinforce the global economy. That is the whole benchmark of Atmanirbhar Bharat or Make In India,” Ravi Shankar Prasad told The Economics Time. 

According to the report, this step has been taken to encourage international companies to shift their manufacturing focus beyond China and spread it to the rest of the world. Due to pandemic many global companies who rely on China for their production has witnessed a huge dispute in the supply chain which cost them huge losses. 

The initiative is taken by the Indian Prime Minister Narendra Modi for making Indian self-reliant and boost local manufacturing and become least dependent on imports. India has increased the customs duty on electronics and components as well to promote local manufacturing. 

India is not taking these steps against any company or country, this promotes ‘Make in India” and boosts local manufacturers. India is planning to become a big global player in the electronics manufacturing industry. “The move is not against any country, but is India positive,” Prasad said.

Promoting manufacturing in India will generate job opportunities for youth and people will get more employment and education in the country. As per the report, the country is aiming to generate more than 300,000 direct jobs and 900,000 indirect jobs in the upcoming years. Meanwhile, Indian companies have also applied to get benefited from the incentive program. Companies like Dixon Technologies and Optiemus Electronics are also included. 

“Electronic manufacturing is also a part of the digital economy, therefore, we must ensure that we all need to work together to help India grow, develop, and leave a mark as a big electronic manufacturing destination which includes consumer electronics, medical electronics, mobile electronics, component electronics, defense electronics, strategic electronics that is the ecosystem I expect and I have not the slightest doubt that in spite of our modest success, there is enough potential in India to emerge,” Prasad added further. 

Companies like Ascent Circuits and Visicon has also applied for component manufacturing. According to the report, the Indian government is providing a financial incentive of up to 6 percent on the incremental sale of products for the first five years. The plan also offers a 25 percent incentive on capital expenditure for electronic components and semiconductors production. 

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Karan Sharma
I'm a technology freak love to be around gadgets test them and write interesting reviews about them. Here at The Electronics, I'm responsible for writing innovative technology, reviews, and technology related news. I also keep an eye on the content quality of the team. Hope you enjoy reading my content.

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