In a significant development, the Tata Group, one of India’s largest conglomerates, is set to begin manufacturing Apple iPhones in India for both the domestic and global markets. This move marks a remarkable shift in Apple’s production strategy, as it departs from its previous reliance on Chinese-made devices. The announcement was made by India’s Electronics and Technology Minister, Rajeev Chandrasekhar, highlighting the country’s growing importance in Apple’s diversification efforts.
Under the leadership of Prime Minister Narendra Modi and his financial incentives to boost local manufacturing, India has become an increasingly vital part of Apple’s strategy, especially in the wake of the trade tensions between Washington and Beijing. Apple’s decision to look beyond China and invest in Indian manufacturing aligns with its broader goals.
Minister Rajeev Chandrasekhar expressed his support for the growth of global Indian electronics companies, emphasizing their role as trusted manufacturing and talent partners for global electronic brands. This endeavor is in line with Prime Minister Modi’s vision of making India a global electronics powerhouse.
The Tata Group has acquired the operations of Apple supplier Wistron Corp for approximately $125 million, as confirmed in a company statement. This acquisition signifies India’s growing prowess in electronics manufacturing and represents a significant milestone for Apple, making Tata Group India’s first homegrown iPhone manufacturer.
India’s success in attracting Apple’s attention is attributed to the visionary Production-Linked Incentive (PLI) scheme launched by Prime Minister Modi. The PLI scheme, initiated in 2021, aims to boost domestic manufacturing, create jobs, and support exports across various sectors, including large-scale electronic manufacturing. It has already propelled India into a trusted hub for smartphone manufacturing and exports.
According to Union Commerce and Industry Minister Piyush Goyal, Apple exported $5 billion worth of goods from India in 2022, with plans to produce 25 percent of global units within the country over the next four to five years. This development marks the culmination of a year-long negotiation process and signals Tata Group’s expansion into electronics production.
As India’s largest conglomerate, the 150-year-old Tata Group has diversified its portfolio, venturing into electronics production and e-commerce in recent years. The company already manufactures iPhone chassis at its factory in Tamil Nadu, further solidifying its role in Apple’s global supply chain.
This partnership between Tata Group and Apple underscores India’s growing importance as a manufacturing hub, contributing to the nation’s goal of becoming a global leader in the electronics industry.
Sources By Agencies