New Delhi: India is doing everything to make Apple’s manufacturing and supply chain more robust in India. Rather than just manufacturing ready-to-use products, the government wants Apple and its suppliers to ramp up Indian manufacturing of its component and sub-assembly parts. This might pave the way for Apple to eventually make more of their products here or locally: MacBooks and iPads.
The Indian government is pushing Apple to first build a strong component ecosystem locally, writes a recent report from several sources. The concept is to make India a crucial component of its global supply chain. The components manufactured in India could not only be used in assembling products in India, but also in overseas manufacturing plants like Apple’s production facilities in China and Vietnam.
Focus on Local Components
Currently, Apple is already having a presence in India for manufacturing of its products, particularly iPhones. Other companies manufacturing parts for Apple, like enclosures and other components, are also based in the country.
This network is now desired as a much larger network by the government. More supplier companies could establish factories in India to manufacture parts, sub-assemblage, test and do other manufacturing tasks.
This is significant as it can help lessen India’s reliance on imports and help build a stronger electronics-making industry in the country. It can supply Apple with a bigger domestic supplier base, too.
MacBooks and iPads Could Follow
Recently, India’s Electronics and IT Minister Ashwini Vaishnaw said that Apple might shift from manufacturing iPhones and go ahead with other products. This has created a hope that the Apple Watch, iPad and MacBook might be built in India in the future.
This doesn’t indicate that Apple will jump into production of all these products in India today, though. Recently, the government is working on the development of the supplier environment first. The firm will rely on a variety of factors, including demand, Apple’s plans for the rest of its worldwide supply chains, and the company’s drive to diversify away from China, to drive expansion into final assembly.
A Bigger Opportunity for India
India could gain from the approach of Apple, as well as the nation’s electronics sector. A more robust Indian base of suppliers could hence offer another key manufacturing site for Apple, and provide diversification for its global supply chain.
In India, Apple’s growth is expected to induce more investment, job creation and even other global electronics companies and suppliers setting up shop in the country.
The change is already apparent. Apple has been ramping up its iPhone manufacturing in India and at the same time its suppliers are also expanding their local operations. Reuters reported earlier that Apple was targeting India for the manufacture of a big chunk of its iPhone production by the end of 2026 for the US market.
The general idea is to make India an entirely electronics manufacturing house rather than just an assembly point. With an increasingly large component ecosystem, Apple may incrementally increase the production of its products in India, thereby making India even more significant in the Apple’s supply chain.
