After the coronavirus outbreak, more and more brands and shifting their production from China, and Apple is no different. As per a report by the Economic Times the company is planning to scale up its production capacity in India. The Cupertino-based firm is planning to move almost 20% of its production capacity from China to India. After this move, Apple is expected to become the biggest exporter in the nation as its local revenue could soar up to $40 billion in the next 5 years.
The move is a conclusion of several meetings between Apple’s senior executives and top-ranking government officials in a couple of months, added the report.
“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,” a senior government official told ET. However, there is no official confirmation from Apple yet. It was also reported that there are still some issues with clauses regarding export in the government’s PLI scheme to encourage the local mobile phone manufacturing.
“There are some problems with some of the clauses. For instance, valuing the entire plant and machinery already in use in its plants across China and other places at 40% of that value and the extent of the business information sought under the scheme are some of the irritants,” a source was quoted in the report. The government is determined to bring the hi-tech manufacturing to India and is addressing the concerns to make this deal a success.
Prime Minister Narendra Modi also met the top executives from tech giants like Apple, Samsung, and other OEM manufacturers, reported ET.
The Indian cell phone export is estimated to reach $100 billion by 2025, says the Indian officials. The current valuation of smartphone export is just $3 billion in India. Apple’s investment in China’s manufacturing sector is valued at $220 billion in the financial year 2018-19. Apple is already manufacturing iPhone XR in India via Foxconn. iPhone XR is the most selling iPhone so far. Apple has recently launched iPhone SE 2020 its affordable smartphone.
Steps like these will help boost the Indian economy and will help to create more job opportunities in the country.