Latest!

After iPhones, India may boost incentives for MacBook production

Highlights

  • The government wants Apple’s manufacturing ecosystem to grow rapidly, according to top IT ministry sources.
  • This comes at a time when the American electronics giant is considering a China-plus-one procurement strategy.

With Apple looking to broaden its manufacturing base, India may soon manufacture MacBooks and iPads. According to the Times of India, the government also plans to increase the scope of its production-linked incentive scheme for IT hardware to nearly Rs 20,000 crore, up from the current outlay of Rs 7,380 crore.

In light of Apple’s ‘China-plus-one strategy,’ a source in the IT ministry said the government wants to expand its manufacturing ecosystem in the country.

“We’ve tasted success with the iPhone production as Apple’s all-star team. The country now produces smartphones worth billions of dollars thanks to Foxconn, Wistron, and Pegatron. In the future, we will manufacture MacBooks and other products such as iPads in India,” Times of India reported, citing a ministry source.

Currently, the IT ministry has sent a proposal to enhance the scheme, which is being reviewed by finance and other related ministries. The PLI scheme for smartphones, introduced in 2021, promised an incentive support of 1-4 percent over four years, however, the new scheme is expected to raise it to 5 percent.

Border tensions

Due to the border tensions between India and China, Apple had been cautious about manufacturing anything other than iPhones in India in the past since China is Apple’s biggest production base and a strong sales market as well.

Apple’s troubles are compounded by the lack of a supplier base in India since Chinese component makers are reluctant to relocate to India. It was intended that five major global players and ten domestic champions would benefit from the PLI scheme. As a result, the government believes that Apple and other top sellers such as HP and Dell must broaden their India sourcing to realise India’s dream of becoming a ‘global manufacturing hub.’

Comments
Tags: