Apple is looking to begin iPad production in India by participating in a new government proposed scheme to increase India’s exports of computer parts and products: Report
Premium smartphone maker Apple Inc is trying to gain a foothold in India. It also wants to take advantage of the rebate on domestic manufacturing of electronics devices under the government’s incentive scheme. This is the reason that the Apple iPad manufacturing is being planned in India by the Apple company. Having said this, the local manufacture of the Apple iPad will give a boost to the Make in India campaign. Also, the iPad can be offered in India at a lower price. Not only this, this step can generate large-scale employment in India. Let us know that Apple assembles iPad extensively in China, which is trying to shift to India.
PLI scheme will come for laptop and computer
This initiative of the central government will help to make India a major hub for export of tablet products, as per the news of Live Mint. Significantly, this announcement has been made by the company at a time when the Government of India has announced a Rs 12,000 crore PLI scheme for the telecom sector. Apart from this, the Central Government has announced that soon the PLI scheme for computers and tablets will be brought. Earlier last year, a $ 6.7 billion plan was launched by the central government, especially for smartphone exports.
PLI scheme may be announced for smartwatches
PM Modi’s dream is to promote India as an electronics manufacturing hub. Also, it will create jobs on a large scale. The government will introduce a 50 billion-rupee PLI scheme to boost domestic manufacturing, especially for wearables devices and smartwatches. It can be announced in the next two months.
Apple, along with others, is lobbying for a bigger budgetary outlay of 200 billion rupees before that plan is finalised, as India doesn’t yet have the scale or the supply chain for making IT products and competes with duty-free imports of tech products, two of the sources said.
Apple’s push comes at a time its iPhone supplier Wistron is just restarting operations at a southern Indian plant after angry workers went on a rampage last year. Apple is yet to take the Taiwan manufacturer off of probation.
Indian Government is also planning another PLI, at a budget of roughly 50 billion rupees over five years, to boost domestic manufacturing of wearable devices such as smartwatches, the sources said, adding the plan could be announced within two months.
Apple assembles a bulk of its iPads in China but is fast diversifying production to markets such as India and Vietnam to minimize the impact of the U.S.-China trade war and the coronavirus crisis. Its top supplier Foxconn is building assembly lines for iPads and MacBook laptops in Vietnam, Reuters reported late last year. Other iPad assemblers include Taiwan’s Compal Electronics and China’s BYD Electronics International.
In India, Apple will likely have iPad’s assembled by one of its existing suppliers in the country as early as this year, two of the sources said, though its plans could get delayed as India makes the entry of BYD difficult amid its wariness to give new tech business to Chinese companies.
“The government is asking Apple to get iPads assembled by its contract manufacturers here, the non-Chinese companies” one of the sources, a government official said.