Apple of India’s eye sparkles, as the company announces manufacturing in India

After serving the world with novel COVID-19 China is likely to face its consequences as major multinational companies of the world are planning to move out of China. This move may boost up India’s degrading economy. 


One of the Big five technology companies in the world, Apple may shift about one-fifth of its production capacity from China to India. 


Although no official announcements have been made yet the several meetings between top executives of Apple and Indian government officials are providing indications. Prime minister’s meeting with executives of top mobile brands Apple, Samsung, and Lava held back on 28th December last year is assumed to be the reason behind this shifting. 


Apple’s pie in India

At present, Apple covers around 2-3% of the market share in India. Out of IPhones costing $1.5 billion sold in India only $0.5 billion are manufactured in India. 


“India isn’t a big market for Apple as the company sells only a fraction of its total output in India. It is actually looking at India as a base to manufacture and export, essentially diversifying its a production out of China” says an official. 

PLI Scheme.

PLI Scheme 

Production Linked Incentive Scheme(PLI) is the government’s scheme for Large Scale Electronics Manufacturing launched in March 2020. It offers a production linked incentive to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components. 


“We expect Apple to produce up to $40 billion worth of smartphones, mostly for exports through its contract manufacturers Wistron and Foxconn, availing the benefits under the production linked incentive (PLI) scheme”, said a government official. Also, there exist some clauses in the government’s PLI scheme which are needed to be modified for attracting this huge investment in the country. As to avail of the benefits of the PLI scheme, it has to manufacture at least $10 billion worth mobile phones between 2020 and 2025.


Impact on Indian economy


India will be benefited in several ways, as it may gear up our slowed down economical condition as basing its manufacturing units in India will help in economic growth. 


As Apple is the top investor in China employs 4.8 million people, therefore if this materializes it will generate more employment opportunities in India resulting in poverty alleviation. Also, R&D technology and skills up-gradation will be the outcome. Resulting further to an increase in the GDP of India.


Expert’s views

Market experts are of the view that India still lacks in resources required to employ in such large-scale businesses. “We don’t have an ecosystem ready which could support any large-scale deployment. The ecosystem right from skilling to ancillaries is almost negligible and may weaken the confidence of big investors who are planning to set up long-term business in India” says founder at research agency  TechArc - Faisal Kawoosa. 

Author- Aishwarya Tiwari 

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