Tata Group to manufacture Apple iPhones in India. In a significant departure from its previous manufacturing strategy, Apple Inc. is set to commence the production of iPhones in India, both for the domestic market and global consumers, within the next two and a half years.
This announcement was made by India’s Electronics and Technology Minister, Rajeev Chandrasekhar, underscoring India’s growing production capabilities and its pivotal role in Apple’s diversification plans away from Chinese manufacturing.
The Tata Group has acquired the operations of Wistron Corp, a key Apple supplier, for a sum of $125 million.
This strategic move was confirmed during a board meeting, as stated in an official company release. Minister Chandrasekhar expressed gratitude to Wistron for establishing a global supply chain in India, with Indian companies at its core.
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This development is largely attributed to the financial incentives introduced by Prime Minister Narendra Modi to boost local manufacturing, create employment opportunities, and support exports.
The Production-Linked Incentive (PLI) scheme, initiated in 2021, has played a pivotal role in transforming India into a trusted hub for smartphone production and exports.
The PLI scheme covers 14 sectors, including large-scale electronic manufacturing, textiles, medical devices, automobiles, and pharmaceuticals, with an investment outlay of ₹1.97 lakh crore.
Union Commerce and Industry Minister Piyush Goyal revealed that Apple exported goods worth $5 billion (approximately ₹41,200 crore) from India in 2022. He also stated Apple’s ambitious plan to manufacture 25% of its global units within the country over the next four to five years.
As Tata Group to manufacture Apple iPhones in India, the Tata Group’s acquisition of Wistron Corp’s factory in Karnataka marks the conclusion of a year-long negotiation process.
This move is part of the 155-year-old conglomerate’s strategic expansion into electronics production and e-commerce, aligning with its efforts to diversify its business portfolio.
This significant development not only emphasizes India’s growing prowess in electronics manufacturing but also highlights the Tata Group’s strategic endeavor to strengthen its presence in the technology sector.
As Apple expands its manufacturing footprint in India, this collaboration is poised to reshape the landscape of the country’s electronics industry and contribute substantially to its economic growth.
