Tata to Commence iPhone Manufacturing in India
Tata Group is poised to start manufacturing iPhones in India, marking a significant milestone for the country's electronics industry. This comes after Wistron's board approved the sale of its plant to Tata for $125 million. India's government is actively promoting local manufacturing and offering incentives to attract global companies. The move aligns with the global trend of companies adopting a "China + 1" strategy to diversify their manufacturing bases. Apple, in particular, is increasingly focusing on India, opening retail stores and exploring opportunities like Apple Pay in the vast Indian market.
Karobar
Tata Group is set to kickstart the production of iPhones in India, catering to both local and global markets, as revealed by India's Deputy IT Minister, Rajeev Chandrasekhar, on Friday. This development comes shortly after the board of Wistron, one of the three iPhone manufacturers in India, approved the sale of its plant in southern India to Tata, a tech-to-airline conglomerate, for $125 million. This strategic move by Wistron aligns with its efforts to reshape its global manufacturing strategy.
After over a year of negotiations, the deal has been finalized, making Tata the first Indian company to assemble iPhones. Tata Group, a 155-year-old conglomerate involved in diverse sectors, ranging from salt sales to steel production and tech consultancy services, also announced plans to launch 100 Apple stores in the South Asian market.
India's Deputy IT Minister, Rajeev Chandrasekhar, expressed gratitude to Wistron for their contributions and acknowledged the significant step taken by Apple in building a global supply chain from India with Indian companies playing a pivotal role. He emphasized the Ministry of Electronics and IT's full support for the growth of global Indian electronics companies and their partnership with international electronic brands, in line with the Prime Minister's vision of making India a global electronics powerhouse.
This announcement coincides with Google's recent revelation of plans to assemble its Pixel smartphone lineup in India, reflecting the growing trend of companies aiming to establish India as a global manufacturing hub, reducing their dependence on China, following the "China + 1" strategy.
The Indian government is actively offering substantial financial incentives to attract global companies and encourage them to set up manufacturing operations within the country. These incentives include tax reductions, production-linked incentive schemes, and more.
India's expanding domestic demand, coupled with the government's focus on local manufacturing and export opportunities arising from the "China + 1" strategy, has positioned India's EMS industry (finished product and electronics manufacturing) for significant medium-term growth, as noted by Macquarie analysts in a recent report.
Furthermore, Apple has been increasingly focusing on India, the world's second-largest smartphone market. The company recently opened its first two retail outlets in the country and is in discussions with HDFC Bank to introduce Apple Pay services in India.
