who'd win over Apple? (image source: aisa.nikkei.com)

India to compete against China and Vietnam to emerge out as the topmost manufacturing hub for Apple.

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With the help of states Karnataka, Tamil Nadu and Uttar Pradesh, India aims to draw in investments from Apple to make sure that close to fifth of Apple’s global manufacturing happens in India in the next five years.

The centre is in the ears of the state and has chalked out plans to realise this aim and as part of this push, officials said, states have been asked to look at exploring models for workers’ dormitories at manufacturing plants and the incentives they can offer to ensure that these set-ups are up to global standards. In this direction the central government is working on policy interventions to attract global players to set up production facilities in the country — from redrawing the production linked incentive (PLI) scheme for IT hardware manufacturing and introducing new PLI schemes to supporting the manufacture of electronic components and wearables like smart watches all has been thought of.

The Government is expecting close to 20 per cent of Apple’s global manufacturing to happen in India in the next 4-5 years, from less than 5 per cent currently. A JP Morgan report had projected that Apple will move 5 per cent of its global production for iPhone 14 to India by late 2022, and could also make 25 per cent of all iPhones in the country by 2025.

China has not been the best geographical location for Apple recently owing to the protests over the country’s covid policies that has resulted in a hit for the manufacturing. It is learnt that due to the disruption in its supply chain capacity in China, iPhone-makers in India — Foxconn, Wistron and Pegatron — have had to shoulder additional burden in manufacturing the smartphone. Manufacturing in India however has not been a smooth sail either. To attest to this, late last year, protests erupted at Foxconn’s plant in Sriperumbudur near Chennai over the condition of dormitories. At the time, both Apple and Foxconn had complained that some remote dormitories and dining rooms did not meet the required standards. Vietnam is also in the run and is competing India in the current climate.

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