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iPhones will be ‘MADE in INDIA’, by TATA

Tejasvi Malhotra by Tejasvi Malhotra
12 September 2022
in Business, Economy
iPhones india
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China’s forced dominance in the world is getting jittery from past some time now. India, to be specific has emerged as a superpower to topple the dragon in upcoming years. Under Prime Minister Narendra Modi, initiatives like ‘Make in India’ among others have come as a game changer in the world economic dominance. Additionally, these schemes will put the lion (India) above the dragon (China). And iPhones being made in India is just another step on the ladder.

iPhones will be built in India

The Indian multinational conglomerate company, Tata Group, is currently in discussion with a Taiwanese supplier to Apple Inc. It is basically in light to establish an electronics manufacturing joint venture in India. The group is seeking to assemble iPhones in the world’s largest democracy.

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Talks with the Taiwanese company, Wistron Corp. are aimed at making Tata a big force in technology manufacturing. To put it simple words, the conglomerate is focused on the company’s expertise in product development, supply chain, and assembly, and people with knowledge of the matter. Further, the success of these talks will make Tata, the first Indian company to build iPhones. However, it is currently assembled mainly in China, by Taiwanese manufacturing giants like Wistron and Foxconn Technology Group.

The structure of the deal and further details are yet to be released. It is also estimated that the plan could imply Tata buying equity in Wistron’s India operations or the companies could build a new assembly plant altogether. Additionally, they can execute both these moves.

The talks didn’t come as a surprise as it was already reported that Apple is looking to expand itself out of China, in regard to the latter’s zero Covid- 19 policy. Reportedly, Apple is ready to produce approximately 1.1-1.2 crore new iPhones in India with its three contract manufacturers – Foxconn, Wistron, and Pegatron, in 2022, up from 7.5 million in 2021.

A successful execution of the said task will bring a vast swathe of achievements to India as a whole. First and foremost, it will jolt the China’s forced hegemony, secondly, India’s mission to total electronic export in 2026 will become a close reality. Thirdly, the assembling of iPhones in India will immensely cater to the customer base of the country with reduced taxes and import duties. And fourthly, it will turn the Indian giant company, Tata, into an original equipment manufacturer (OEM).

India is currently on an electronic spree

Statistically, it is imperative to note that India’s electronic sector has been on a boom since some years. In 2021, the manufacturing output of the electronics sector in India has reached over 5.5 trillion Indian rupees in total. It is one of the fastest growing sectors in India, especially the mobile phone manufacturing industry. With favorable government policies and regulatory support, India is on track to become an electronics manufacturing powerhouse in the future.

Apart from this, particularly value of mobile phones in India have witnessed an impeccable growth graph. In 2017, the manufacturing value was mere Rs. 700 billion. However, in the year 2021, it got surged straight up to Rs. 2,226.75 billion.

Therefore, it won’t be wrong to say that India is currently on a spree of becoming a superpower in almost every sector possible. And this comprises a huge contribution of government launched initiatives.

Governmental schemes making India grow

The idea of the Make in India programme was to transform India into a global hub of manufacturing where the units are to be set up by global and domestic companies. Make in India, coupled with Atma Nirbhar Bharat Abhiyan under which Production Linked Incentive (PLI) scheme has been launched, and it is helping India to emerge as a global manufacturing hub.

In 2021, the IT ministry had notified PLI as a part of national policy on electronics. It would give incentives of 4-6 percent to electronics companies that manufacture mobile phones and other electronic components.

On the other hand, ‘Make in India’ has turned around the waves in India’s favour making India a global hub for manufacturing. In 2014, there were only 2 manufacturing units in India but since the launch of ‘Make in India’ policy it has propelled impressively, taking the number to 130 in just 7 to 8 years.

This milestone is driving India towards a global manufacturing hub. Interestingly, Samsung owns the biggest market share in terms of mobile manufacturing in India. It has opened its largest manufacturing facility in the outskirts of the national capital region with the surging demand for smartphones in India.

Recent reports by the government indicate that India is now the second-largest mobile phone manufacturer in the world. As the companies are moving out of China, India is in the process of capturing the manufacturing market. Successive economic reform in ease of doing business will make India the top mobile manufacturer. iPhones can be the recent addition in the list.

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