Published on October 27, 2023, 12:12 pm
Image source: Fox News
Tata Group, one of India’s largest conglomerates, has announced that it will start manufacturing iPhones in India for both the domestic and global markets. The Deputy IT Minister of India, Rajeev Chandrasekhar, made the announcement on Friday after Wistron’s board approved the sale of its plant in southern India to Tata.
Wistron, one of the three iPhone manufacturers in India, revealed that it finalized the $125 million deal with Tata after considering its global manufacturing strategy. This deal comes after more than a year of negotiations between the two companies. Tata will become the first Indian firm to assemble iPhones but declined to comment further on the matter.
The 155-year-old Tata Group is involved in various industries, ranging from selling salt to producing steel to offering tech consultancy services. The company has previously formed joint ventures with global firms such as Starbucks and has plans to open 100 Apple stores in the South Asian market.
India’s Ministry of Electronics and IT expressed its full support for the growth of Indian electronic companies that partner with global brands like Apple. Their aim is to make India a trusted manufacturing and talent partner for these brands while establishing India as a global electronics power.
Google also recently announced its plans to assemble its Pixel smartphone lineup in India. Many companies are looking towards turning India into a global manufacturing hub as part of their “China + 1” strategy, which aims to reduce reliance on China. The Indian government is actively offering financial incentives worth billions of dollars to attract global companies and encourage them to establish their manufacturing operations in the country.
With its growing domestic demand and government support through policies like lower taxes and production-linked incentive schemes, India’s EMS (finished product and electronics manufacturing) industry is expected to experience robust medium-term growth.
Apple has been increasingly focusing on India, which is the world’s second-largest smartphone market. Earlier this year, Apple opened its first two retail outlets in the country, and there are reports that the company is in talks with HDFC Bank to launch Apple Pay service in India.
Overall, the decision by Tata Group to manufacture iPhones in India highlights the country’s ambition to become a global manufacturing hub and attract more international companies. The Indian government’s support, combined with its growing market and favorable policies, positions India as an appealing destination for global brands looking to diversify their supply chains and tap into the country’s vast consumer base.
Original article posted by Fox News