Apple Revealed Strategies for Speeding up Rating and Expanding their Local parts base in India

Apple has specific plans to increase domestic component production in India. The iPhone maker shared these plans' specifics with members of the Finance Ministry during the meeting. He emphasized that the administration is not open to any fiscal incentives, such as tax breaks.

The action is probably a part of Apple's effort to diversify its supply chains outside of China. Throughout its supply chain, a sizable portion of Apple's suppliers are headquartered in China. It may diversify into other nations as a result of geopolitical circumstances, governmental regulations, and corporate strategy. For the local production of iPhone units, the business has thus far relied on contract manufacturers like Foxconn, Wistron, and Pegatron. Foxlink, Flex, Salcomp, Avary, Sunwoda, and Jabil are just a few of the companies in their ecosystem of component suppliers that support the production of iPhones.

The gathering took place at a time when Apple was placing its bets that India would emerge as a significant manufacturing hub in order to diversify its production capabilities beyond China. In 2017, Apple started producing the iPhone in India. Since then, the company has collaborated with vendors to assemble iPhone models and create an increasing number of components. On April 18, 2023, the iPhone manufacturer launched its first location in Mumbai, and on April 20, 2023, it opened a second location in New Delhi.

The meeting occurred at a time when Apple was placing its faith in India to emerge as a significant manufacturing hub in order to expand its manufacturing capabilities outside of China. Overall, the government's output-linked incentive program has helped to increase the manufacture of smartphones. The government projects that the program will increase production by a total of Rs 10.05 lakh crore, exports by well over Rs 6.5 lakh crore, and direct and indirect employment by at least 8 lakhs and maybe more by 2026.