Apple may shift 20% of outsourced production to India from China: report

13, May. 2020

Photo by Devon Janse van Rensburg on Unsplash
Photo by Devon Janse van Rensburg on Unsplash

NEW DELHI, NNA – U.S. technology giant Apple Inc. plans to shift nearly a fifth of its production capacity from China to India to benefit from the Indian government’s incentives, The Economic Times reported on its website Monday.

Several meetings between Apple’s senior executives and top Indian government officials have cleared Apple to explore the shift, the Indian news outlet said, adding the shift could increase Apple’s India manufacturing revenues, via contractors, to around $40 billion over the next five years.

Apple currently develops hardware in India by outsourcing production to two Taiwanese contractors, Foxconn Technology Group and Wistron Corp. Both firms also do Apple’s contract manufacturing in China.

The Indian government proposed incentives in last September, such as corporate tax relief, to boost domestic manufacturing and attract large investments. Investments would ideally cover mobile phone manufacturing as well as the assembly, testing, marking and packaging of electronic components.

“The proposed scheme is likely to benefit five to six major global players and few domestic champions,” India’s Press Information Bureau said in a statement March 21. India last year announced it would relax local sourcing rules for foreign direct investment in certain types of retail.

Apple’s study of India comes amid ongoing trade tensions between China and the United States.