Seeking a company Apple to participate in a new plan to boost India’s exports of computer products, which is part of what government and industry sources say: It plans to bring iPad tablet manufacturing to the South Asian country.
India launched a $ 6.7 billion plan to boost smartphone exports last year, as the prime minister stepped up efforts to boost electronics manufacturing and create jobs.
Apple, which has steadily increased production of iPhones in India to reduce its dependence on Chinese manufacturing, has participated in this scheme through contract manufacturers.
She said three sources are closely involved in formulating the plan Agency Reuters: The government is now preparing to unveil another incentive to drive local manufacturing of IT products, including tablets, laptops and servers.
The new performance incentive scheme, which provides cashback for export manufacturers, has a budget of 70 billion rupees ($ 964.5 million) over five years, and is expected to be launched by the end of February, the sources said.
Apple, along with others, is lobbying for a bigger budget spending of 200 billion rupees before finalizing this plan, as India does not yet have the scale or supply chain needed to make IT products.
The push by Apple comes as the iPhone supplier, Wistron, is restoring operations at a factory in southern India after labor protests erupted last year.
The sources said: New Delhi is also planning another business plan, with a budget of about 50 billion rupees over five years, to boost the local manufacturing of wearable devices, such as smart watches, adding that the plan can be announced within two months.
Apple assembles the bulk of the iPads in China, but it is rapidly diversifying production to markets such as India and Vietnam, to reduce the impact of the trade war between the United States and China and the Coronavirus crisis.
Reuters reported late last year that Foxconn, Apple’s largest supplier, was building assembly lines for iPads and MacBooks in Vietnam.
Apple will likely assemble iPads in India by one of its existing suppliers in the country early this year, although its plans may be delayed because India is making BYD’s entry difficult amid its caution against giving new technology business to Chinese companies.
“The government is asking Apple to assemble iPads from its two contract manufacturers here, and companies that are not Chinese,” a government official said.