In recent years, India’s stature as a global manufacturing hub has been steadily on the rise, positioning itself to rival even China’s dominance. Leading this charge is the renowned Tata Group, which has embarked on a strategic journey to solidify its position in the lucrative iPhone assembly market.
Tata Group’s foray into iPhone assembly commenced with the acquisition of an iPhone manufacturing facility from Taiwan’s Wistron Corp., nestled in Karnataka, a neighboring state. This bold move underscored Tata’s commitment to bolstering its partnership with tech giant Apple.
The impending deal, anticipated to materialize as soon as May, heralds Tata Group’s ascent to prominence in the iPhone manufacturing landscape. With Tata Electronics Ltd poised to assume control of Pegatron’s operations post-acquisition, the deal encompasses an existing iPhone production plant near Chennai, along with another under construction in Tamil Nadu.
Amidst these developments, Apple’s ambitious plans to ramp up iPhone production in India have collected substantial momentum, supported by favorable financial incentives from the Indian government. Prime Minister Narendra Modi’s administration aims to diversify the nation’s supply chain and diminish reliance in China, positioning India as a viable alternative manufacturing destination.
Apple’s vision for India entails scaling up production by over five-fold, with aspirations to reach a staggering $40 billion in the next 4-5 years. This ambitious trajectory is underscored by recent milestones, with Apple surpassing the 10-million-unit mark in shipments and clinching the top spot in revenue for the first time in a calendar year.
According to government sources, Apple, through its vendors is projected to create employment opportunities for more than 5 lakhs individual in India within the next three years. Currently, Apple’s vendors and suppliers employ 1.5 lakhs people in the country with Tata Electronics emerging as the primary contributor to job creations and operating two plants for apple.
A testament to India’s burgeoning role in iPhone manufacturing, exports from the country witnessed an astronomical surge, soaring from USD 6.27 billion in 2022-23 to USD 12.1 billion in 2023-24, representing nearly a 100% increase.
India’s emergence as a formidable player in iPhone manufacturing, led by Tata Group’s strategic operations, epitomizes a tale of innovation, collaboration, and economic empowerment. As the mutual partnership between Tata and Apple flourishes, India’s industrial landscape stands poised for unprecedented growth and global acclaim.
