Apple Inc. began producing its most recent iPhone models in the South Asian region in a notable departure from its custom of keeping a significant portion of enormous Chinese factories managed by its primary Taiwanese assemblers.
Everything you need to know about iPhone’s Struggle!
India benefits from several factors, such as the increasing geopolitical tensions between Western nations and China, as well as its strengthening partnership with the United States, Japan, and Australia. These countries are all part of the Quad, a coalition of democratic nations that aims to counter China’s military and economic ambitions.
Investor confidence may increase as a result of the nation’s year-long leadership of the Group of 20 nations. In the following three years, India is likely to have the fastest-growing big economy in the world. Before the end of the decade, its GDP is anticipated to overtake China as the third-largest in the world.
However, analysts caution that for India, a nation of 1.4 billion people, long-lasting improvements to a lethargic industrial sector are still a ways off. The Make in India initiative, which seeks to boost exports and generate employment, hasn’t exactly worked out. 14% of the GDP is made up of manufacturing, a percentage that has hardly changed throughout the years.
One of Make in India’s main objectives, increasing the manufacturing sector’s contribution to the GDP to 25%, has had its deadline postponed three times since its debut in 2014 from 2020 to 2022 to 2025.
Even while the latest financial incentives gave Apple a low-cost route to open a facility in India, the California-based corporation is still only producing a small portion of its iPhones there. And for every accomplishment, there are several businesses that have left India due to persistent difficulties like navigating the bureaucracy in the nation, such as Harley-Davidson Inc., Ford Motor Co., and General Motors Co.
The government must keep reducing bureaucracy and streamlining labor regulations if it is to live up to the demands of a revolutionized India. Another difficulty is ensuring that companies may purchase land.
The problem of employment is another. The roughly 12 million Indians who enter the workforce each year must rely heavily on services for opportunities due to delays in strengthening manufacturing and a general decline in agriculture. However, although developing at a rate that few other large economies can match, India still finds it difficult to generate enough jobs in that industry.
If India wants to raise its per capita income, which is currently lower than Bangladesh’s $2,723, jobs are a crucial element of the equation. A so-called ‘virtuous economic cycle’ will start when incomes rise because this will increase consumption, encourage businesses to invest more, and lead to the creation of new jobs.
Deveshwar identified a number of issues that are mostly self-inflicted, including inadequate infrastructure, a lack of skilled personnel, and the failure to put in place policies that can draw sufficient investment. Even as India signs significant corporate agreements, Apple being just one prominent example some are concerned about the consistency and nature of the investments.
According to Deloitte, a sizable share of foreign capital has recently seeped into the services industry rather than the manufacturing sector. As of 2020, India has dropped out of the top 25 countries on Kearney’s FDI Confidence Index as inflows began to slow down in 2021. Kearney’s index measures the three-year confidence of businesses investing in a particular market. Only four emerging markets—the UAE, Qatar, Brazil, and China—made the list for 2022.
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What is the main struggle to manufacture iPhone in India?
For the expatriate workers, the slower pace of the factory floors in India is its own shock to the system. A Taiwanese manager at a different iPhone supplier in the Chennai area told Rest of World that India’s 8-hour shifts and industry-standard tea breaks were a drag on production.28 Nov 2023
What steps is Apple taking to mitigate production struggles and improve its manufacturing operations in India?
Apple is investing in local manufacturing capabilities, strengthening supply chain resilience, fostering partnerships with Indian suppliers, and collaborating with the government to address regulatory challenges and streamline operations.