For the 1st Time Apple May Manufacture iPads in India

A report by Reuters says that Apple Inc.is lobbying the Indian government to reach a fair deal that could see the iPads get manufactured in India for the first time. The report indicated that the Indian government was planning to roll out an incentive program that aimed at boosting the country’s computer export and that is something Apple is interested in. However, the Cupertino-based company is reportedly looking to negotiate a better deal.

No official confirmation is there however. Notably, Apple already manufactures some iPhone models in India since 2018, in reaction to a government policy that imposes high tariffs on imported phones and other products. This is part of the “Make in India” initiative which is designed to grow local content. 

Apple is increasing looking to move its entire production out of China. A report by Asian Nikkei indicated that the US company was planning to move some iPad production to Vietnam this year. It was noted that this would be the first time such would be happening anywhere else.

Apple is expected to dole out an initial budgetary sum of up to Rs. 70 billion ($964 million) over five years.

The new performance-linked incentive (PLI) scheme, which offers cash-back to manufacturers for exports, will have a budget of up to 70 billion rupees ($964.5 million) over five years, the sources said. It’s expected to be launched by the end of February.

Apple, along with others, is lobbying for a bigger budgetary outlay of 200 billion rupees before that plan is finalised, as India doesn’t yet have the scale or the supply chain for making IT products and competes with duty-free imports of tech products, two of the sources said.

Apple’s push comes at a time its iPhone supplier Wistron is just restarting operations at a southern Indian plant after angry workers went on a rampage last year. Apple is yet to take the Taiwan manufacturer off of probation.

New Delhi is also planning another PLI, at a budget of roughly 50 billion rupees over five years, to boost domestic manufacturing of wearable devices such as smartwatches, the sources said, adding the plan could be announced within two months.