Apple in India: Navigating Opportunities and Challenges in Local Manufacturing

Apple in India: Navigating Opportunities and Challenges in Local Manufacturing

India accounts for?2%?of all iPhone sales in the world and is making?progress?to create a more?robust?manufacturing sector. Apple has committed to increasing its manufacturing footprint in India, aiming for?25% of its iPhones?to be produced there by?2025. This shift is part of a broader strategy to diversify production away from China and leverage India's vast consumer market.

Considering the size and scale of the Indian Consumer market, it would be wise move by the Indian government to introduce a similar policy to that of the TKDN in Indonesia, which requires 40% of the material of a phone that‘s sold in Indonesia be locally manufactured. Initially, mandating 40% may be a step too far, but starting at a threshold of of 20% or 10% of the materials needed to sells products in India may significantly improve the manufacturing capacity in India.

But this sort of regulation cannot be a done in a vacuum, India needs to provide better manufacture related infrastructure such as

  • improving its existing Special Economic Zones(SEZ).
  • working on uniting the various regulatory boards to give out permits much faster.
  • incentivizing financial firms to grant access to capital for small and medium scale manufacturing.
  • rooting out institutionalized corruption.

These measures usually attract foreign investment as companies establish manufacturing facilities where they find easy access to capital, smooth functioning of the bureaucracy, access to abundant and skillful workforce and solid logistical network.

India has been taking positive steps in most, if not all of these domains with the introduction of the “Make In India” Scheme or the more effective “Production Linked Incentive (PLI)” scheme. Even the macroscale development of infrastructure in India, in ports and roads is a step in the right direction.

More recently, the Business Reforms Action Plan (BRAP) 2024 introduced by the Department for Promotion of Industry and Internal Trade (DPIIT) to streamline the process of issuance of licenses to a period of 45 days from the day of application and the integration of a National Single Window System to receive approvals and clearances across the different regulatory bodies through a single platform are much-needed reforms undertaken by the Government of India (GOI) to improve the infrastructural output and enhance the overall business environment in the country.

In that sense, India needs to have a delicate balance between both “Opportunities and Obligations” for companies seeking to trade with India.


Source:

Image source: Microsoft Copilot AI

ReutersIndonesia expects $1 billion investment commitment from Appl…

Business Reforms Action Plan 2024 to further strengthen Make…

Umesh Lohani

Blogger/ writer

2 个月

I just published The $1,200 Phone in Your Hand: How It’s Getting Manufactured in China for Just $10 #iPhone #apple #USA https://link.medium.com/uF78gEyUIPb

回复
Saqif Mohammed

Making iPhones Affordable | I write on tech and business sometimes

2 个月

This could help a lot with the current trade deficit. Apple did a wise investment nonetheless.

要查看或添加评论,请登录

Arfan Ziyad的更多文章

社区洞察

其他会员也浏览了