Apple's India Manufacturing Surpasses Rs 1 Lakh Cr In 2023

New Delhi, Jan 10 (KNN) Tech giant Apple, aligning with India's increasing focus on domestic manufacturing, assembled iPhones valued at over Rs 1 lakh crore within the country, in 2023, according to industry data disclosed on Tuesday.

The true market value of these iPhones, manufactured in India, may experience notable variations influenced by tax structures in different countries, as highlighted in a report by ET.

Notably, Apple surpassed the production targets outlined in the government's production-linked incentive (PLI) scheme, potentially paving the way for additional residual incentives for the company's contract manufacturers, the report added.

Officials indicated that these incentives would be contingent on the overall output, showcasing Apple's commitment to boosting its manufacturing presence in India and reducing dependency on China.

Concurrently, the southern Indian state of Tamil Nadu unveiled investment agreements exceeding USD 4.39 billion with key Apple suppliers such as Tata Electronics and Pegatron.

Additionally, investment deals were inked with automotive giant Hyundai Motors.

A Reuters report emphasised Apple's strategic shift toward India for future growth, aiming to diversify production beyond China. Pegatron is also actively progressing in establishing a second factory in the country.

India's largest conglomerate, Tata Group, is considering the construction of one of the largest iPhone assembly plants in the country, aligning with Apple's objective to enhance manufacturing in South Asia.

The proposed facility is expected to be located in Hosur, Tamil Nadu. The ambitious plan aims to make the plant operational within 12 to 18 months, featuring around 20 assembly lines and a workforce of 50,000 within two years.

This proposed plant signifies a substantial move by Apple to localise its supply chain and strengthen collaboration with Tata, ultimately reducing its reliance on manufacturing in China.

Presently, the Indian conglomerate manages an iPhone manufacturing unit acquired from Wistron Corp. in the southern Indian state of Karnataka.

(KNN Bureau)