Team News Riveting
Tech behemoth and iconic brand Apple Inc is all set to shift the majority of its manufacturing from China to India.
The iPhone maker is considering producing up to $40 billion (about Rs 2.5 lakh crore) worth of smartphones over the next five years through manufacturers Wistron and Foxconn.
This is a fifth of its production capacity and can aid India’s recovery. If the company is able to manage that then it would become India’s largest exporter.
Sources close to the development said that the Government of India had given nod to the proposal with some amendment in policy to facilitate Apple to shift its manufacturing units in Indian soil.
The union cabinet is expected to approve the proposal to allow Foxconn, Wistron and Pegatron, which manufacture the bulk of Apple’s iPhones, to go-ahead under the productivity-linked incentive (PLI) scheme for mobile devices.
The Government of India had been in hard negotiation with the company for the last three years. After a series of meetings, the iconic global brand could be finally convinced to shift part of its production from China to India.
Apple’s contract manufacturers have submitted proposals to avail benefits under the government’s Rs 50,000 crore production linked incentive scheme for boosting electronics manufacturing. The proposals submitted by the companies to the Ministry of Electronics and IT to avail benefits of the Production Link Incentives (PLI) are expected to create 12 lakh employment opportunities — 3 lakh direct and around 9 lakh indirect jobs.
Apple’s over 95 per cent of mobile phone manufacturing takes place in just one country — China.
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