Technology companies want to move their manufacturing facilities to India with Prime Minister Narendra Modi’s efforts to boost electronics manufacturing and create jobs in the country.
Apple has long been on the same line, and a new report suggests the Cupertino-based tech giant wants to expand its footprint in the country.
With the relocation, Apple wants to take advantage of a new performance-based incentive system (PLI) that the Indian government is reportedly planning. According to a Reuters report citing sources close to the matter, the program is expected to try to boost local production of tablets, laptops and servers in India.
Under the new PLI program, the government will offer manufacturers cash-back for exports. The program is expected to be launched by the end of February and will have a budget of up to Rs 7,000 crore over five years, the sources report.
With Apple’s long-cherished plans to move its production from China to other countries, the company has boosted production of its products in India. Taking advantage of the Indian government’s upcoming program, Apple is now reportedly also plans to produce its laptops and iPads in India.
However, the company is pushing for a larger budget under the program, which amounts to 20,000 rupees. It is said that India does not yet have the “order of magnitude or supply chain for the production of IT products,” as the sources cited in the report report report.
Apple’s move comes at a time when its iPhone supplier Wistron is reopening operations at a South Indian plant after angry workers ransacked last year. Apple has not yet released the Taiwanese manufacturer from probation.
Much of Apple’s current iPad assembly lines are in China. However, the tech major is rapidly diversifying this production strategy into markets such as India and Vietnam. The shift in production capacity will also minimize the impact of the US-China trade war and the ongoing pandemic on its business plans.
The report mentions that the relocation could therefore take place as early as this year. Apple is likely to place the order to assemble these iPads with one of its existing suppliers in the country.
“The government is asking Apple to have the iPads assembled here by its contract manufacturers, the non-Chinese companies,” a government official told Reuters.
It is easy to see how such an increase in Apple production in india will help establish its IT industry and create local jobs at a global level.