Amid the geopolitical tensions with China and the problem of Covid-related lockdowns in China, US-based tech company Apple has started looking at India as an alternative to manufacture some of its products. They have asked some of its suppliers to shift AirPods and Beats production from China to India. Apple has already started manufacturing iPhone products in India this year. iPhone 13 was manufactured in India and the iPhone 14 is also be manufactured in India soon. Last week it was announced. Apple company’s iPhone exports from India have crossed $1 billion in five months since April and will reach $2.5 billion by March 2023, according to a recent news report by Bloomberg.
Apple’s latest move to start manufacturing in India will send a good signal to manufacturers outside India and will attract other companies also to move their production to India. Apple will also be able to reduce its dependency on China for production. Mexico and Vietnam are also attracting manufacturers from America amid rising tensions with China. The Indian government will be finally happy to see its long-standing efforts to woo investments in the electronic manufacturing sector finally bearing fruit.
India is already a leading manufacturer of smartphones and mobile accessories segment. Its global share in smartphone manufacturing has increased from 9 percent in 2016 to 16 percent in 2021, according to a study by Counterpoint Research. Apple shifting production to India will also increase employment opportunities in India, boost India’s electronic exports, and also help the economy.