According to a recent report by Bank of America, Apple is projected to manufacture approximately 18% of its iPhones in India by the fiscal year 2025. This development is a direct result of the Indian government’s production-linked incentive (PLI) scheme for mobile phones, which aims to entice global manufacturers to establish production facilities in the country. Under the PLI scheme, eligible companies can receive a subsidy of up to 4% of the manufacturing cost.
Apple’s Progress in Indian Manufacturing
Apple has already commenced iPhone manufacturing operations in India. In 2021, the company began assembling iPhone 11 and iPhone 12 models at its manufacturing plant in Tamil Nadu. Furthermore, Apple is planning to initiate the assembly of iPhone 13 models in India in the near future.
Impact of the PLI Scheme on Apple
The Indian government’s PLI scheme is expected to facilitate Apple in expanding its manufacturing capacity within India. This strategic move will allow the company to decrease its reliance on China for iPhone production while simultaneously meeting the rising demand for iPhones in the Indian market.
Expanding Manufacturing in India
Apple is not alone in its endeavor to enhance manufacturing capabilities in India. Other prominent global smartphone manufacturers, including Samsung, Xiaomi, and Vivo, are also investing in manufacturing operations within the country. This trend bodes well for the Indian manufacturing sector, creating employment opportunities and bolstering the overall economy.
Additional Details from the Bank of America Report
The PLI scheme for mobile phones is anticipated to attract investments worth $30 billion and generate 2 million jobs in India. Notably, Samsung, Xiaomi, and Vivo have already announced plans to expand their manufacturing operations in India, affirming the success of the PLI scheme. The Indian government is considering extending the PLI scheme to other sectors such as semiconductors and electric vehicles. The growth of iPhone manufacturing in India is poised to have a positive impact on the Indian economy, contributing to job creation, export growth, and attracting foreign investments.
