Apple supporting "Make in India" movement.
As the whole world is fighting the aftermath of COVID-19, it has caused a massive tremor in our global economic centers and has trembled well established companies which are worth billions of dollars.
India is suffering a global pandemic and had a perilous faceoff with China. It’s audacious decision to boycott Chinese products is yet uncertain to supply for its vast population across the country.
Foxconn, a multinational tech contractor manufacturer which is based in Taiwan. It is the world's largest provider of electronics and the third-largest tech company by revenue.
Foxconn, the company which manufactures all the devices of apple has decided to invest almost $1 billion in southern India for the manufacturing of all the devices. The tech giant produces only a couple of models of the iPhone in India as of now. These include the iPhone 7 and iPhone XR, which are made by contract manufacturers Foxconn and Wistron. Apple’s manufacturing in India is worth only half a billion dollars at the moment. Apple plans to haul its manufacturing site to China. Foxconn chairman, Liu Young-way, said, “Foxconn would ramp up its investment in India.”
However, it is not possible to cut down the whole production at one go from China, Apple and Foxconn have stated that they will cut down the production gradually from China while the factories are being built in India.
This is a big opportunity for India in terms of employment. India is facing constant hurdles in creating jobs for its citizens. As compared to China the labor in India is cheaper, and the gradual expansion of its supplier base over here will assist Indian Apple’s plants to act as an export hub of these products. This will help India to combat unemployment. Having Apple widen its local presence is likely to be a boost for Prime Minister Narendra Modi’s flagship “Make In India” drive, aimed at creating new jobs.
The company wants to reap the benefits of the Indian government’s new production-linked incentives (PLI) scheme to encourage local production in the country. According to some rumored reports, the company will use the contractors to produce “up to $40 billion worth of smartphones" in India, mostly for export purposes. The company is also expected to benefit from the relaxation given on local sourcing norms by the Indian government late last year.
Foxconn has said that it will look forward to building plants in Tamil Nadu which will take place over the course of three years. It will be able to add almost 6,000 jobs in the Sriperumbudur plant in Tamil Nadu.
Written by: Sourav Jadhav and Chirag Agarwal
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