A contract manufacturer for Apple has been shifting 6 production lines from China as a part of the global business effort for derisking of manufacturing bases by diversifying the supply chain. It has been looking forward to exporting around $5 billion worth of iPhones from India apart from catering to the domestic market.
“The few facilities is expected to generate employment for about 55,000 Indian workers over a year or so,” as said by some sources to TOI.
After a proper establishment of the company, they’ve eyed to include tablets, computers and even laptop beyond phones in the following years.
China has been cornered after the allegation of the spread of Covid-19 global health crisis. With the derisking f the global business and trade tension mounting, several globally established companies are looking to diversify their production base across the world.
India has aggressively provided a platform for the establishment of several supply chains. The initial load of goods have already reached in India’s establishment during the pandemic.
Wistron, Pegatron, Foxconn, Korean giant Samsung along with Indian establishers such as Dixon Lava and Micromax will be manufacturing mobile phones under the government’s production linked incentive scheme with Foxconn already having established its plant, Wistron and Pegatronn are likely to follow up.
“22 domestic and global players applied under the scheme that will result in production of the tune of Rs 11.5 lakh crore over the next 5 years, with exports estimated at Rs 7 lakh crore,” said communication and IT minister Ravi Shankar Prasad.
With the recent investment by global tech giants such as Facebook and Google investing in Reliance Jio, the push for phone making has been rendered. They have planned on making the business of Android-based smartphones at affordable prices.
The key reason why apple companies want a production shift to India is because of the Taiwan owned entities and the plus points of growing companies away from China given the geo-political risk.
Written by Ompriya Sahoo
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