India is set to significantly boost its role in the global manufacturing landscape, with a target to produce 25% of all iPhones by 2028. This ambitious plan was confirmed by Prime Minister Narendra Modi and is aligned with Apple’s strategy to diversify its production base beyond China.
Background and Current Production
As of now, India accounts for around 14% of global iPhone production, a substantial increase from 5-7% in early 2023. The production currently includes models such as the iPhone 12, 13, 14, and 15. This expansion has been facilitated by major manufacturers like Foxconn and Tata Electronics, who have been scaling up their operations in India.
The Role of the PLI Scheme
The Production Linked Incentive (PLI) scheme launched by the Indian government has been a pivotal factor in attracting Apple and other tech giants to ramp up manufacturing in India. This scheme offers incentives and subsidies to companies that boost their production levels and meet specific investment targets. The PLI scheme is designed to enhance India’s manufacturing capabilities and position it as a global electronics hub.
Apple’s Strategy and Local Ecosystem
Apple’s decision to increase its manufacturing footprint in India is part of a broader strategy to reduce its dependency on China. By 2028, Apple aims to produce 25% of its iPhones in India, which translates to around 50 million units annually. This move is not only about assembly but also involves building a robust local ecosystem of suppliers and vendors. Companies like Tata Electronics are expected to play a crucial role, with plans to establish a major iPhone assembly plant in Tamil Nadu.
Economic and Employment Impact
The increase in iPhone production in India is expected to have a significant economic impact. It will create thousands of jobs and boost local economies. Tata’s new plant alone is projected to employ around 50,000 workers within the next two years. Additionally, the expansion of manufacturing capabilities will likely lead to increased exports, enhancing India’s position in the global electronics market.
Future Prospects
With Apple’s intensified focus on India, the country is set to become a critical player in the global supply chain for electronics. The collaboration between the Indian government and tech giants like Apple underscores a mutual commitment to growth and innovation. The successful execution of this plan could see India rival China as a primary hub for iPhone production, thereby diversifying global supply chains and mitigating risks associated with over-reliance on a single country.
India’s goal to manufacture 25% of all iPhones by 2028 marks a significant milestone in its journey towards becoming a global manufacturing powerhouse. The PLI scheme, coupled with strategic partnerships with companies like Apple, is set to transform India’s role in the global tech industry. This initiative not only promises economic benefits but also positions India as a key player in the global supply chain for electronics.
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