Apple manufacturers plan to shift production to India. Several of Apples major contract manufacturers have recently announced they are shifting several of their production lines from China. The reason the production companies are shifting their production lines is due to China’s action during the pandemic. Specifically, when the Chinese government prevented certain medical products from leaving the country. Additionally, there have been growing concern over China’s handling of the pandemic including their attempt to cover up its severity. These factors coupled with the ready major disruptions caused by the pandemic in the supply-chain have prompted this decision. Additionally, as the trade, the China other countries these production manufacturers believe it is wise to diversify the supply chain.
Economies
The Apple manufacturers plan shift production in India has already seen major support from the government and investment. In addition to Apple’s contract lectures several other companies including Samsung, Wistron, Pegatron, and Foxconn are also production to India. Indeed, with over 22 companies besides those affiliated with Apple shifting production to India the country’s economy will increase. Specifically, within the next year or so estimated total of 55,000 jobs will become available for the various production line. In other words, New jobs will employ 50,000 workers.
Apple is also very pleased with the move as it expects export about $5 billion worth of iPhones from India. Additionally, that figure does not incorporate any profits from catering to Indian domestic markets which may also see an increase. The majority of this production is shifting to India specifically due to the government creating incentives for companies. Indeed, it is expected that the total investments by the government will be around Rs. 11,000 crores. A tremendous amount of money. Though Apple manufacturers plan shift production to India one that will be recouped in possibly a few years.
