BREAKING: Apple is shifting more iPhone production to India to avoid U.S. tariffs on Chinese goods. By the end of 2025, one in four iPhones could be made in India.
What does this mean for India, China, and global manufacturing? 🧵
What does this mean for India, China, and global manufacturing? 🧵
Today, China dominates global manufacturing with 28.8% share of output, more than 10x India's share. Its infrastructure, logistics networks, and skilled workforce are unparalleled.
However, labor costs in China have surged—factory workers earn $600+ per month, vs. $150-$300 in India...
For Apple, this shift is monumental. China has been the backbone of its production for decades, but rising tariffs and geopolitical risks make diversification essential.
Will Apple's gamble on India pay off?
However, labor costs in China have surged—factory workers earn $600+ per month, vs. $150-$300 in India...
For Apple, this shift is monumental. China has been the backbone of its production for decades, but rising tariffs and geopolitical risks make diversification essential.
Will Apple's gamble on India pay off?
Lower labor costs are an advantage, but replicating its success in China won’t be easy. India must address infrastructure gaps and scale up its supply chain efficiency to meet Apple’s high standards.
To address this, India is supporting Apple’s manufacturing shift with financial incentives like the Production Linked Incentive scheme, infrastructure upgrades, supply chain digitization and workforce training.
What could be the impact for India?
To address this, India is supporting Apple’s manufacturing shift with financial incentives like the Production Linked Incentive scheme, infrastructure upgrades, supply chain digitization and workforce training.
What could be the impact for India?
Apple’s expansion in India could create up to 600,000 jobs by FY25, including 200,000 direct roles at factories operated by suppliers like Foxconn and Pegatron.
The multiplier effect could generate millions of indirect jobs across logistics, component manufacturing, and retail.
How big is this impact?
The multiplier effect could generate millions of indirect jobs across logistics, component manufacturing, and retail.
How big is this impact?
Apple’s shift could be transformative for India. iPhone exports under the PLI scheme are projected to hit ₹1.2 lakh crore ($14B) in FY24 alone, diversifying India's export base beyond traditional textiles.
This move also strengthens India’s position as a preferred destination for foreign investment.
As Apple deepens its commitment to Indian manufacturing, other companies are following suit...
This move also strengthens India’s position as a preferred destination for foreign investment.
As Apple deepens its commitment to Indian manufacturing, other companies are following suit...
Apple isn’t the only OEM pivoting away from China. Lenovo plans to relocate all laptop production to India within three years, while HP and Dell are increasing their Indian operations.
India’s competitive costs and government incentives make it an attractive alternative for global tech giants seeking supply chain diversification.
How far can this trend go? Could India truly challenge China as the world’s factory?
India’s competitive costs and government incentives make it an attractive alternative for global tech giants seeking supply chain diversification.
How far can this trend go? Could India truly challenge China as the world’s factory?
India’s potential as a manufacturing powerhouse is undeniable: a $5T economy rapidly approaching, a young workforce eager for opportunities, and rising domestic consumption driving growth across sectors. Yet challenges like uneven development and regulatory hurdles remain.
If India can overcome these obstacles, it could reshape global trade dynamics and emerge as a critical player in high-tech manufacturing. Apple’s move could be the catalyst that unlocks India's full economic potential.
If India can overcome these obstacles, it could reshape global trade dynamics and emerge as a critical player in high-tech manufacturing. Apple’s move could be the catalyst that unlocks India's full economic potential.
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