GG News Bureau
New Delhi, 12th September. China’s global hegemony has been shaky for some time. In particular, India has emerged as a global power poised to dethrone the dragon in the coming years. Under Prime Minister Narendra Modi, initiatives such as ‘Make in India,’ among others, have ushered in a new era of global economic dominance. Furthermore, these schemes will elevate the lion (India) above the dragon (China). And making iPhones in India is just another step up the ladder.
iPhones will be manufactured in India
Tata Group, an Indian megacorporation, is currently in talks with a Taiwanese supplier to Apple Inc. It is essentially feasible to establish a joint venture for electronics manufacturing in India. The organization hopes to assemble iPhones in the world’s largest democracy.
Wistron Corp., a Taiwanese company, aims to make Tata a major force in technology manufacturing. To put it simply, the conglomerate is focused on the company’s expertise in product development, supply chain, and assembly, as well as people with relevant knowledge. Furthermore, if these talks are successful, Tata will be the first Indian company to manufacture iPhones. However, it is currently primarily assembled in China by Taiwanese manufacturing behemoths such as Wistron and Foxconn Technology Group.
The deal’s structure and other details have yet to be revealed. It is also possible that Tata will buy equity in Wistron’s India operations, or that the companies will build a new assembly plant entirely. They can also perform both of these moves.
The talks did not come as a surprise, as it has previously been reported that Apple is looking to expand outside of China due to the latter’s zero Covid- 19 policy. According to reports, Apple is planning to manufacture approximately 1.1-1.2 crore new iPhones in India with its three contract manufacturers – Foxconn, Wistron, and Pegatron – in 2022, up from 7.5 million in 2021. A successful completion of the aforementioned task will result in a slew of accomplishments for India as a whole. First and foremost, it will shake China’s imposed hegemony; second, India’s goal of total electronic export by 2026 will become a near reality. Third, the assembly of iPhones in India will greatly benefit the country’s customer base by lowering taxes and import duties. Fourth, it will transform the Indian conglomerate Tata into an original equipment manufacturer (OEM).
India is currently on a high-tech binge
Statistics show that India’s electronic sector has been booming for several years. In 2021, the manufacturing output of India’s electronics sector will total more than 5.5 trillion Indian rupees. It is one of India’s fastest growing industries, particularly the mobile phone manufacturing industry. India is on track to become an electronics manufacturing powerhouse in the future, thanks to favourable government policies and regulatory support.
Aside from that, the value of mobile phones in India has grown at an incredible rate. The manufacturing value in 2017 was only Rs. 700 billion. However, by the year 2021, it had risen to Rs. 2,226.75 billion.
As a result, it would not be incorrect to say that India is currently on a path to becoming a superpower in almost every possible sector. And this includes a significant contribution from government-launched initiatives.
Government schemes that help India grow
The Make in India programme aims to transform India into a global manufacturing hub, with units set up by both global and domestic companies. Make in India, in conjunction with the Atma Nirbhar Bharat Abhiyan, under which the Production Linked Incentive (PLI) scheme was launched, is assisting India in emerging as a global manufacturing hub.
As part of the national policy on electronics, the IT ministry notified PLI in 2021. It would provide 4-6% incentives to electronics companies that manufacture mobile phones and other electronic components.
On the other hand, ‘Make in India’ has shifted the tides in India’s favor, establishing the country as a global manufacturing hub. There were only two manufacturing units in India in 2014, but since the implementation of the ‘Make in India’ policy, the number has increased dramatically, rising to 130 in just 7 to 8 years.
This landmark is propelling India toward becoming a global manufacturing powerhouse. Surprisingly, Samsung has the largest market share in India for mobile manufacturing. According to recent government reports, India is now the world’s second-largest mobile phone manufacturer. As companies relocate from China, India is gaining a foothold in the manufacturing sector. Successive economic reforms in the ease of doing business will propel India to the top of the mobile manufacturing industry. iPhones are the most recent addition to the list.
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