Coronavirus pandemic and the prolonged US-China trade war has brought China in the center of the global ire where the companies are looking to reduce their economic engagement with the country. In light of the same crisis, Apple is considering shifting its production to India as per the latest news.
Meetings Between Apple and Government Officials indicate Apple likely to shift production to India
As per the news doing rounds on media, there have been several meetings between the company’s senior management and top government officials in India. The discussions hint that the tech giant is likely to shift about one-fifth of its production from Mainland China to India.
Economic Times report company eyeing India to scale its revenue
As reported by Economic Times, the company is considering scaling its revenue to a massive 40 Billion dollars in India in the coming five years. The Senior government official talked to ET on the same and said 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.”
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No official statement from Apple on the news
There are no official confirmations from Apple on this yet. A source familiar with the matters stated that there are specific roadblocks in the plan due to government policies.
Hindrances due to government laws
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”
However, the government authorities are keen to address the issues since the central government is looking to bring tech manufacturing giants to India.
Apple looking to shift production base out of china
The officials told Economic times that India is not a big market for Apple as the company sells only a fraction of its total output in India. It is looking at India as a base to manufacture and export, essentially diversifying its production out of China.
High Prospects for India
If the plans are appropriately implemented, and Apple diversifies its production from China to India, it would make the tech giant one of the largest exporters from India.