According to Union Minister Goyal, Apple would increase production in India by 25%.

The remarks made by Piyush Goyal are a little more abrasive than what Apple’s contract manufacturers had previously told New Delhi. Foxconn Technology Group, Pegatron Corp., and Wistron Corp., three of Apple’s major Taiwanese suppliers, submitted applications and were granted financial incentives.

According to a top government official in India, Apple Inc. wants to increase production there to approximately a quarter of its entire global output as it looks to diversify from its primary manufacturing base in China.

Apple would increase production in India

At a public event on Monday, India’s commerce and industry minister Piyush Goyal stated, “They are already at roughly 5-7% of their manufacturing in India.” If I’m not mistaken, they intend to increase their manufacturing by 25%.

Goyal’s remarks are a little more combative than what Apple’s contract manufacturers have previously told New Delhi. Foxconn Technology Group, Pegatron Corp., and Wistron Corp., three of Apple’s major Taiwanese suppliers, petitioned for and were granted financial incentives to increase manufacturing and exports of Indian smartphones.

According to the proposal, the businesses agreed that by the end of March 2026, up to 20% of iPhone volume would be produced in India, Bloomberg Businessweek reported last month. A request for comment from Apple was not immediately complied with.

After years of success with Chinese manufacturing, Apple has started to diversify in the face of escalating US-China relations and Communist Party regulations that impeded output. Lockdowns at Foxconn’s primary iPhone plant in Zhengzhou last year sparked worker uprisings and compelled it to lower output projections.

Production Increases

The gap between the first China-made model and the first India-made version was significantly shortened last year when the Cupertino, California-based business unveiled its most recent iPhone. Additionally, it is producing more iPhone 14s in India than any earlier model.

They unveiled the most modern versions made in India, according to Goyal.

The minister’s remarks appear to confirm a JPMorgan Chase & Co. study from last year, which said that 25% of all iPhones will be produced in India by Apple by 2025. Goyal didn’t provide a date or say whether the greater aim would cover the assembly of other goods in India, like iPads and MacBook laptops.

A $6.7 billion output-linked incentive programme that offers cash to companies that increase domestic smartphone production has been shaped in large part by Goyal’s ministry and the ministries of technology and finance in India. From April through December, Apple exported more than $2.5 billion worth of iPhones from India thanks to this strategy, nearly doubling the amount exported during the prior fiscal year.

FAQs

Also Read | Airlines will now pay passengers back for downgraded tickets. Read for more details here