Apple suppliers promises $900 mn investment to build capacities in India
As companies look to add local manufacturing capacities on the back of the scheme, the Indian government’s production-linked incentive (PLI) scheme is bringing in big money into India. According to a report by Reuters, “Three suppliers for Apple -- namely Foxconn, Wistron and Pegatron -- have committed $900 million in India over 5 years.”
As per the report, the three manufacturers are expected to invest Rs. 4,000 crore, Rs. 1,300 crore and Rs. 1,200 crore in the country, respectively. Furthermore, the investments are being made to add capacities and ramp up domestic production of mobile phones for Apple and other brands, as said by the two industry executives.
According to filings with the registrar of companies, while Foxconn and Wistron already make smartphones for Apple, Pegatron is also striding towards kick starting its operations here as has recently set up a local entity in India for the same.
Through these firms, Apple has been moving parts of its manufacturing operations to India. Currently, Foxconn manufactures the iPhone 11 in its Chennai factory, while Apple has also confirmed earlier this year that the version of the iPhone SE will also be made in India now.
Speaking of the PLI scheme, it is a significant part of the government’s ambitious ‘Atmanirbhar Bharat’ plan. This scheme aims to make the country self-sufficient in manufacturing of key items where mobile and electronic components are being focused as they are amongst the biggest non-oil imports in India besides gold.