Apple Wants To Build iPads In India: How Will It Benefit India?

Apple is reportedly lobbying the Indian Government in a move that would enable it to kick start iPad assembling in the country. As per Reuters, Apple wants to cash in on India's plan to boost its computer exports, but it's looking to make the deal more lucrative.

Apple's current partners in India include Foxconn, Pegatron, and Wistron. As per the reports, one of these contractors will be assembling the iPads for Apple in India "as early as this year." This move seems like an extension of Apple's plans to make products under the "Make in India" initiative.

Exports Boost Initiative

The initiative is said to have a budget of up to Rs. 70 billion for a period of five years; however, Reuters reports that Apple wants the budget to be tripled to Rs. 200 billion. The reason is believed to be India's low-scale supply chain that's unable to meet Apple's demands.

Last year, India initiated a $6.7 billion plan to boost smartphone exports, with an aim to promote electronics manufacturing and create employment for more people. Apple, which already produces iPhones in India to minimize its reliance on China for manufacturing, took part in the initiative through its contract manufacturers. It was also reported recently that Apple would shift some iPad production to Vietnam in 2021, which will mark the beginning of iPad manufacturing outside China.

What's The PLI Scheme?

The new performance-linked incentive (PLI) scheme aims to give incentives to companies manufacturing in India. The scheme is said to be launched by the end of February. The Government of India has approved 16 electronics OEMs for this scheme, out of which 10 are mobile phone companies. These approved companies will promote exports and around 60 percent of the total production will be contributed towards exports in the next five years.

Samsung has reportedly committed to manufacturing smartphones worth Rs. 2.2 trillion in the Rs. 15k and above price bracket. Since Samsung and Apple are responsible for 60 percent of the global smartphone sales, the PLI scheme will boost their production in the country.

What's In It For India?

The biggest take advantage of the PLI scheme would be new employment opportunities for Indians. The scheme is expected to create nearly two lakh jobs in the next five years. Not just that, it will also generate indirect employment which is said to be way more than direct jobs.

Besides, the new initiative will also boost the domestic value addition to 40 percent for mobile phones, while it could grow up to 45 percent for other electronic components. The scheme is also said to put India on the map in terms of the global export market, which is currently dominated by China and Vietnam.