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Make for the world: India must leverage Apple's shift from China

2 min read

Apple's Production Shift to India: A Strategic Move

The report of Apple intending to relocate its iPhone production for the United States from China to India highlights a significant strategic shift influenced by global trade dynamics.

Reasons for the Shift

  • Trade Tensions: The tariffs imposed by US President Donald Trump have particularly targeted China, making trade with China risky.
  • Derisking Strategy: Large corporations like Apple seek to mitigate risks by diversifying production locations.

Implications for India

  • Economic Advantage: Moving production to India could significantly benefit the Indian economy at multiple levels.
  • Increased Production: iPhones worth $22 billion were assembled in India in the year ended March 2025, which is a 60% increase from the previous year.
  • Export Growth: Apple exported iPhones worth over ₹1 trillion in 2024, showcasing India's manufacturing capabilities.

Strategic Opportunities

  • Doubling Output: If production for the US shifts, output may need to double by 2026.
  • Component Manufacturers: Increased production scale may attract more component makers to India.

Challenges and Requirements

  • Investment Attraction: India must simplify processes to avoid bureaucratic hurdles.
  • Land Access: Easier access to land is crucial for establishing production bases.
  • Trade Agreements: Reducing import duties and negotiating bilateral trade agreements are essential to facilitate global corporate bases in India.

Potential Impact

This move, termed as India's "Apple moment," could transform the country's manufacturing sector, significantly boosting manufacturing and job creation.

  • Tags :
  • trade war
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