Apple Leads The Job Growth In India

(CTN News) – Apples a day keep the doubters away! Please pardon our facetious approach to a mission-critical issue for India. After you get past the bad joke, our excitement came from reports of Apple creating 100,000 direct jobs in India using the federal government’s PLI program over the last 18 months.

Not just Apple’s offshoring success would’ve made the current regime grin from ear-to-ear, but the fact that it could serve as a model for other global giants looking to establish manufacturing bases.

As we mentioned yesterday, bulk chemicals could benefit from a similar production-linked incentive (PLI).

Apple’s success story so far

Approximately 25% of Apple’s iPhones are created in India by its manufacturing partners and component suppliers, according to Business Standard report.

Its vendors, Foxconn, Pegatron, and Wistron, have created 7,000 more jobs than they committed.

In addition to component and accessory makers, ecosystem also created jobs.The government’s second PLI scheme was launched in August 2021. Since then, Tata Electronics, Salcomp, Foxlink, Japil, Sunwoda and others have added another 40,000 jobs.

According to the report, Foxconn created over 35,000 jobs in Tamil Nadu, while Pegatron created 14,000 additional jobs (also in that state) based on data provided by iPhone manufacturers. During this time period, Wistron generated 12,800 jobs in neighboring Karnataka.

There’s more to come from Apple

Earlier, we reported that the government had granted preliminary approval to several Chinese companies for setting up manufacturing facilities in India under joint ventures with Apple vendors.

Along with other products from the Apple store, it appears the government is also interested in enhancing the local value chain for iPhones in India.

Out of 17 Chinese suppliers, 14 have sought clearances from the government, and most of these have been approved, the report stated.Among others, Sunny Opticals, Han’s Laser Technology, Yuto Packaging, Salcom, and Bozon came up.

As Apple considers making MacBooks, iPads and AirPods at its Indian factories, India’s export revenues from handsets could reach $9 billion by end-March.

As a result, the government might raise PLI spending for IT equipment from Rs.7350 crore to Rs.20,000 crore.

Apple’s ecosystem needs to grow in India to keep up with the government’s China-Plus-One global supply chain strategy. The Finance Ministry and other nodal ministries are reviewing a plan.

In February 2021, the government approved a PLI proposal that guaranteed one to four percent incentive support. This new scheme aims to boost it to 5%.

Additionally, laptops are covered by ITA-1, which means they’re duty-free, unlike smartphones, which are 20% duty-free.

SEE ALSO:

In Mexico, Tesla Will Build a New Factory