Back in December, I reported on Apple looking to India in an effort to diversify its manufacturing to not be reliant on China. It seems that the Indian government is waiting with open arms and ready to give incentives for Apple to bring iPad and MacBook production into the country.
Specifically, the government will increase its outlay for the production-linked-incentive (PLI) that it provides for electronic hardware manufacturing.
According to reports, the Indian government knows the value of having Apple manufacturing in the country. The company already does some iPhone assembly in the country through Apple partners such as Pegatron and Foxconn.
The IT Ministry is working on ways to entice Apple, including the PLI outlay increase from Rs 7,350 crore to Rs 20,000 crore. This budget will help appeal to more tech companies or boost the production of those who already have a presence in the country.
Diversifying
Apple has consistently tried to make inroads into India, perhaps the biggest market where the company has little presence. Sales of iPhones are not high in India but Apple has been wanting to become a part of the economy of the country for several years.
The company wants to reduce its reliance on production in China. Apple is facing a major reduction in the number of iPhone Pro (iPhone 14 Pro) models due to ongoing disruptions at Foxconn's largest manufacturing plant in China. In October, I reported on Foxconn issues in Zhengzhou amid the ongoing COVID-19 pandemic in China. The country is still swept by the virus and the Chinese government has taken a hardcore approach.
This episode served to scare Apple enough that it wants to be able to turn to other manufacturing bases in the future.
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