Apple to invest $1 billion to expand its manufacturing facility in India

Apple is reportedly planning to invest nearly $1 billion in India. The investment is said to be majorly focused on increasing Apple’s manufacturing capabilities in India. This comes after the government of India relaxed some rules for foreign companies.

Apple would be investing the amount via its various suppliers in India. Foxconn, which has been manufacturing Apple iPhones for many years, would be one of the suppliers, according to a Times of India report.

The Cupertino, California-based tech giant would not only manufacture products in India but also plans to export them to other countries. The report mentions that Apple would make the maximum use of its manufacturing capabilities in India to meet the product demands in other markets.

This comes during IT Minister Ravi Shankar Prasad’s open offer for Apple and other smartphone brands to manufacture and export ‘Made in India’ products. The government has promised to offer human resource, investor-friendly policies, incentives for making in India, and for exports.

The move of manufacturing in India would help Apple dodge the 20 percent import duty that it pays currently. Apple currently assembles and exports the iPhone 6s and iPhone 7 at its supplier Wistron’s Bengaluru facility. The company was also reportedly testing the manufacturing of iPhone X in India a few months ago. 

According to a recent Nikkei Asian Review report, Apple is planning to shift 15-30 percent of its manufacturing and production facilities outside China amidst the on-going US-China trade war. With India offering human resource and better ease of investment, Apple could be amongst the biggest beneficiaries.

The iPhone maker is also planning to bring its retail experience to India by opening its first Apple store in Mumbai next year.