News Karnataka
Thursday, April 25 2024
Technology

Tata Group to Manufacture Apple iPhones in India

The Tata Group is about to start producing Apple iPhones in India, which is a historic move. The partnership is expected to start operating in two and a half years, serving both domestic and international markets. With this revelation, Apple is taking a significant step away from its heavy reliance on Chinese manufacturing and toward the expanding manufacturing capabilities of India.
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News Delhi: In a momentous development, Tata Group is set to embark on the manufacturing of Apple iPhones in India. The collaboration will cater to both domestic and global markets and is projected to become operational within two and a half years. This announcement represents a pivotal shift in Apple’s strategy, moving away from a predominant reliance on Chinese production and venturing into India’s growing manufacturing prowess.

Indian Government’s Support for Electronics Manufacturing

Electronics and Technology Minister Rajeev Chandrasekhar underscored the Indian government’s full commitment to supporting the growth of global Indian electronics companies. This support extends to collaboration with international electronic brands that aim to establish India as a trusted manufacturing and talent partner. The initiative aligns with the vision of Prime Minister Narendra Modi, who aspires to position India as a global electronics powerhouse.

Tata Group’s Acquisition of Wistron Corp Operations

In a significant move, Tata Group has acquired the operations of Wistron Corp, a prominent supplier to Apple. This acquisition, valued at approximately $125 million, signifies India’s growing importance in Apple’s diversification strategy. The transaction was officially announced during a board meeting, emphasizing the increasing role of India in Apple’s global supply chain.

PM Modi’s Production-Linked Incentive (PLI) Scheme

Minister Chandrasekhar lauded the pivotal role of Prime Minister Narendra Modi’s production-linked incentive (PLI) scheme. This visionary scheme has been instrumental in elevating India as a trusted and significant hub for smartphone manufacturing and exports. Launched in 2021, the PLI scheme spans 14 sectors, including large-scale electronic manufacturing, with the objective of promoting domestic production, generating employment opportunities, and bolstering exports.

Apple’s Expanding Presence in India

Union Commerce and Industry Minister Piyush Goyal shared that Apple made exports worth $5 billion (approximately ₹41,200 crore) from India in 2022. Apple’s active plans to manufacture 25% of its global units within India over the next four to five years signify the growing significance of India’s manufacturing capabilities in Apple’s global operations.

Tata’s Acquisition of Wistron Corp Factory

The acquisition of the Wistron Corp factory in Karnataka by the Tata Group marks the culmination of a year-long negotiation. Tata, a conglomerate with a legacy spanning 155 years, has been actively seeking opportunities to venture into electronics production and e-commerce. The company has been engaged in the production of iPhone chassis, the metal framework of the device, at its expansive facility in Tamil Nadu, which spans hundreds of acres of land.

Significance of the Collaboration

The partnership between Tata Group and Apple is a significant milestone for India’s electronics manufacturing sector. It bolsters India’s reputation as a preferred global hub for electronic production and innovation. India’s growth in electronics manufacturing and exports can be largely attributed to Prime Minister Modi’s visionary PLI scheme, designed to enhance domestic production, generate employment, and promote exports.

Diversification of Apple’s Manufacturing Base

This collaboration signifies a strategic shift for Apple, reducing its reliance on Chinese manufacturing and diversifying its manufacturing base to India. This diversification is critical, given the challenges posed by the Washington-Beijing trade war. India’s growing production capabilities and Prime Minister Modi’s financial incentives for local manufacturing have positioned the country as a vital component of Apple’s diversification strategy.

In conclusion, the partnership between Tata Group and Apple holds immense promise for India’s electronics manufacturing sector. It reinforces India’s position as a global electronics manufacturing powerhouse, aligning with the government’s vision of fostering domestic manufacturing and promoting India as a preferred global destination for electronics production. The collaboration also underscores Apple’s recognition of India’s manufacturing capabilities and its commitment to establishing a significant presence in the country’s thriving electronics industry.

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