Centre asks Apple to make goods worth $50 billion annually in India

Centre asks Apple to make goods worth $50 billion annually in India

• By Staff Writer

The Centre has proposed that electronics giant Apple generate annual production output worth $50 billion in India over the next 5-6 years in a push to its 'Make in India' program. This would include expanding its locally-made product kitty beyond iPhones to include Macbooks, iPads, air pods, and watches.

“The meeting with the Apple officials happened recently, where senior members of the government – including a top minister – were present," a source told TOI.

They explained that the government told Apple that India is setting up an enabling environment to give a massive push to electronics manufacturing in the country, with a big eye on exports.

Though its top production partners -- the Taiwanese trio of Foxconn, Wistron, and Pegatron -- have set up a base in India, Apple’s manufacturing in the country remains minute when compared to its global needs.

On the other hand, China accounts for the majority of Apple's production and an estimated 95% of its goods are sourced from there. Furthermore, Foxconn and Wistron are already manufacturing for Apple in India, though volumes are 'near negligible' when compared to what they manufacture in China.

A part of the production in India is exported, though other products from its portfolio are not made here and simply imported. Only the iPhone is made in India currently, but the latest iPhone13 is still not.

"The enabling environment includes production-linked incentive (PLI) schemes to encourage companies to invest in and grow, manufacturing in India. Also, capital subsidy plans are being given out, such as the one allotted for kickstarting semiconductor manufacturing where the government has extended support of $10 billion for those willing to invest,” TOI's source added.