Apple planning to move 20% production to India
Tech giant, Apple is devising ways to scale its local revenue to US$ 40 billion over the next five years. At the same time, in a bid to diversify its supply chain in the wake of the novel coronavirus, Apple is planning to shift nearly one-fifth of its production capacity from China to India. If the country manages to become the site where Apple has 20% of its production capacity, Apple could become India’s largest exporter.
The talks between senior executives in the company and Indian government are already on for the same. “There are some problems with some of the clauses. For instance, valuing the entire plant and machinery already in use in its plants across China and other places at 40% of that value and the extent of the business information sought under the scheme are some of the irritants.”
This will prove to be a major gain for India, if the deal materializes because it will lead to numerous benefits like massive opportunities for employment generation. Currently, Apple sells phones worth $1.5 billion (appx) in India, of which less than $0.5 billion is locally manufactured.