In what feels like a promising situation for India, Apple Inc recently announced that it has started production of iPhone 13 in the country. The iPhone will be manufactured at Foxconn-owned plant in Southern Tamil Nadu. Foxconn is Apple’s Taiwanese contract manufacturer. According to reports, the company might also assemble iPad tablets here. However, some reports say that although iPhone will be made in India, the pro-version will still be imported.
The move comes as the U.S tech giant seeks to reduce its reliance on Chinese supply chain. Apple has been looking at different countries in order to shift some of the iPhone production from China. The company’s decision to start production in India means that India is increasingly being seen as a country with huge potential to become a manufacturing hub.
According to Counterpoint Research that India accounted for about 3.1% of Apple’s global manufacturing base in 2021, a definite increase from 1.3% in 2020. This number is estimated to be about 7% in 2022.
In the past few years, over-dependence on China caused a lot of problems for the American tech giants. Considering, countries like India, Vietnam and Mexico are among some of the favorites to set up manufacturing bases.
Nevertheless, India would have to work on building export-friendly policies as well as infrastructure in order to compete against China. Having a stronger domestic market will also be an essential factor.