The Modi government is all set to make the country the number one manufacturing hub in the world. Apple’s three most important contract makers have reportedly decided to invest heavily in India. Taiwan’s three companies, Foxconn, Winston, and Pegatron, have agreed to invest $ 900 million (approximately Rs 6,633 crore). They have jumped at the chance to be the beneficiaries of the Production-Linkout Incentive (PLI) scheme announced by India.
The new move is expected to create 10,000 new jobs. The PLI scheme offers $ 6.65 billion in concessions to smartphone makers in India in various categories, including tax. The concessions will be given to companies that export locally made phones over the next five years. The scheme aims to make India one of the most important manufacturing hubs in the world.
Wages in India are low, which is an attractive factor for Apple and its contract makers. In that sense, India’s chances are slim. Local manufacturing may also bring down the price of iPhones in India. Apple currently has less than 1% market share in the Indian smartphone market. Apple wants to change that too.
The new retail store in India is also an indication of this. Foxconn will invest $ 40 billion ($ 542 million), Winston $ 13 billion, and Pegatron $ 12 billion in the PLI project. It is unknown at this time what he will do after leaving the post. They also make equipment for other companies. Foxconn said it had been instructed by the Indian Ministry of Technology not to divulge such details.
Although all three companies manufacture devices from other companies globally, Winstron India only manufactures Apple products. Winstron manufactures only Apple products in India. Winstron currently manufactures about 200,000 iPhone SE (2020) per month. They are in talks with several state governments.
There are rumors that they may make Tamil Nadu their first base. Foxconn also manufactures Shomi India devices. It is hoped that they will use the PLI project to build the iPhone, as their existing infrastructure will be sufficient for Shomi’s construction.
New investments are said to help Apple reduce its dependence on China. The company started manufacturing operations in India in 2017. If all goes well, Apple says it will try to make India one of its flagship manufacturing hubs.