New Delhi: Apple has made headlines by becoming the first company to export more than $5 billion worth of products from India. This achievement comes with the launch of the iPhone 16 Pro and iPhone 16 Pro Max, which are now produced locally, supporting the government’s Make in India initiative.
Apple began its journey in India in 2017, starting with the assembly of the iPhone SE. However, things really changed with the introduction of the Production-Linked Incentives (PLI) scheme. In 2022, Apple India produced around 15 million iPhones, which jumped to 25 million in 2023, making up about 12% of the total global production.
The Indian government sees Apple’s commitment as a big win, with Union Minister Ashwini Vaishnaw celebrating the production of iPhones launched worldwide from Indian factories. The PLI 2.0 scheme, with an investment of ₹1.97 lakh crore, aims to make India a manufacturing powerhouse, reduce imports, and create jobs in important sectors like electronics.
Despite earlier challenges, the momentum is shifting. India’s manufacturing sector has struggled, contributing only 17% to the GDP and employing around 11% of the workforce. With Apple leading the way, there’s hope for a strong manufacturing ecosystem that can connect Indian small and medium-sized enterprises to global markets.
Apple is also diversifying its supply chain away from China, which has been a key factor in its growth. CEO Tim Cook emphasized the need for local production to stay competitive. This shift fits with a broader trend of companies looking for alternatives to Chinese production due to global tensions and supply chain issues faced during the pandemic.
Foxconn, one of Apple’s main suppliers, has invested heavily in India, committing over $1 billion to various projects across the country. This is part of a trend where Apple’s suppliers are setting up operations in India, enhancing local manufacturing.
As Apple expands, its market share has increased from 4.6% in 2022 to 6.4% in 2023, with a target of reaching 8% by 2024. By 2025, Apple plans to shift 25% of its manufacturing to India, up from the current 14%.
While India has a large talent pool and a growing market, challenges remain. The country needs to build a strong network of component manufacturers and improve its regulations to compete effectively with China.
Apple’s success in India could be the boost needed to turn the country into a global manufacturing hub, leading to economic growth and job creation. With Apple’s involvement, the future looks bright for the Make in India initiative.