Apple, of iPhone, iPad, and iWatch fame, is making a significant shift in strategy towards India. They are prepared to increase their Indian suppliers’ local value addition. Inspired by the company’s successful strategy in China, its local value addition in India is projected to increase from the current 11–12% to 15–18%.
Thank you for reading this post, don't forget to subscribe!The Big Move: Shifting Supply Chains from China to India
Apple plans to transfer at least half of its supply chain from China to India within the next three years. This ambitious plan aims to diversify its manufacturing base and tap into the vast potential of the Indian market and workforce.
Job Creation and Economic Impact
This big job creation move by Apple means a lot of good things for India. It’s not just about making more iPhones; it’s about giving a huge boost to jobs for lots of people. Around five lakh people will get jobs making parts and putting together Apple products. This is three times more jobs than there are right now. And it’s not just these new jobs. Other businesses, like those that help with shipping or making boxes, will also grow. Plus, as people learn to make high-tech gadgets, India gets a step up in the tech world. So, the shift is really good news for a lot of people and can help India become an even bigger name in technology.
India as a Growing Tech Hub
As India becomes more crucial for both exporting and selling Apple products locally, a thriving supplier network is expected to emerge. Furthermore, India is seen as having the potential to become a significant hub for research and development, from software to silicon design.
Current Local Value Addition
The current local value addition in India stands at 14%, compared to 41% in China. However, with the right investments and expansion, the company aims to increase this to more than 20% in the next three to five years, according to Neil Shah, vice president at Counterpoint Research.
Apple’s Market Growth in Emerging Economies
Tim Cook, Apple’s CEO, has highlighted the company’s strong performance in emerging markets, including India. With robust double-digit growth and record achievements, Apple sees significant potential in the Indian market.
The Win-Win Situation
The company’s strategic focus on India also includes exploring opportunities for setting up Apple retail stores to strengthen its market presence. The Indian government’s push for ‘Make in India’ and favourable policies for electronic manufacturing are pivotal in attracting investment. The increased investment in India could inspire other tech giants to consider expanding their manufacturing and R&D activities in the country, bolstering India’s position as a global tech hub.
Conclusion
Around five lakh people will get jobs making parts and putting together Apple products. This is three times more jobs than there are right now. And it’s not just these new jobs. Other businesses that work with Apple, like those that help with shipping or making boxes, will also grow. Plus, as people learn to make high-tech gadgets, India gets a step up in the tech world. So, the big plan is really good news for a lot of people and can help India become an even bigger name in technology.
FAQs
Q1: Why is Apple shifting its supply chain from China to India?
To diversify its manufacturing base and tap into India’s vast market potential and skilled workforce.
Q2: What does local value addition mean?
It refers to how much of a product’s worth is created through manufacturing and designing it right within the country.
Q3: How many jobs is this shift expected to create in India?
The move is expected to generate around five lakh direct employment opportunities.
Q4: What potential does India hold for Apple’s R&D initiatives?
India is seen as a significant hub for research and development, with potential leadership in software and silicon design innovations.
