Tech giant Apple wants India to account for up to 25% of its production from about 5%-7% now, the country’s trade minister told a conference on Monday.
The iPhone maker has been moving its manufacturing away from China, following several disruptions last year due to Beijing’s now-dismantled zero-Covid policy.
“Apple, another success story,” Piyush Goyal said, pitching India as a competitive manufacturing destination. “They are already at about 5-7% of their manufacturing in India. If I am not mistaken, they are targeting to go up to 25% of their manufacturing. They launched the most recent models from India, manufactured in India.”
Goyal did not say when Apple wants to meet the target. Apple did not immediately respond to a request for comment.
California-based Apple has bet big on India since it began iPhone assembly in the country in 2017 via Wistron and later with Foxconn. The company’s plans have been in line with the Indian government’s push for local manufacturing.
Foxconn plans to quadruple the workforce at its iPhone factory in India over two years. The Apple supplier also announced a $500 million injection into its India unit in December, to fuel the expansion of its production activities in the country.
Ashwini Vaishnaw, Indian’s electronics and information technology minister, tweeted on Monday that Apple’s exports from India had hit $1 billion in December.
— Ashwini Vaishnaw (@AshwiniVaishnaw) January 23, 2023
Apart from China’s Covid-related lockdowns and restrictions, rising trade and geopolitical tensions between Beijing and Washington have also influenced Apple’s plans to shift production elsewhere.
JP Morgan analysts estimated last year that a quarter of all Apple products would be made outside China by 2025, from 5% currently.
Reuters, with additional editing by Vishakha Saxena