The Commerce Minister of India has revealed Apple’s plan to move about 25% of its production to its nation and away from China.
Key Details
- During a business conference on Monday, India’s Commerce Minister Piyush Goyal announced that Apple is in the process of expanding its production facilities in his country, calling it “another success story” for India’s potential as a manufacturing center.
- Goyal’s comments are a more aggressive statement of Apple’s goals than the company has made publicly, Bloomberg notes.
- India currently produces 5% to 7% of all Apple products but wants to expand that to as much as 25% in the long term. About 25% of iPhone production will be moved to India by 2025. iPhone producer Foxconn has already announced plans to quadruple the size of its production in India within the next two years.
- The news comes after reports that Apple is trying to diversify its manufacturing and divest from China.
- The country’s government has already offered preliminary clearance to 14 of Apple’s suppliers and is in the process of setting up a joint venture with an Indian company as part of the process, Forbes reports.
Why It’s Important
As we previously reported, China’s relationship with Apple is straining as the country is facing disruptive protests, disruptive government policies, and supply-chain delays during the holidays. The company is pushing ahead with efforts to divest from China and increase production and training in other East Asian countries in India and Vietnam.
The news is good for India, which is actively attempting to draw global manufacturing interests and expand its place in the global economy. India is a noted territorial and economic rival of China. The country reached a notable success in December, with the country’s yearly technology exports exceeding $1 billion.
Notable Quote
“India offers the rule of law. We don’t have opaque business models or hidden subsidies. We haven’t done anything that is not known to the public at large. Prime Minister Narendra Modi has set the bar high and, therefore, we have an opportunity in B20 as we work together,” says Goyal.
