Why did Apple choose India to make the iPhone?

On October 5, Apple announced that its new ‘iPhone 14’ will be made in India. Five percent production of ‘iPhone 14’ will start in India from this year. Before this, Apple had been producing the ‘i phone’ in China.

According to JP Morgan, an expert in investment matters, by 2025, Apple will make a quarter of its production in India.

Also, since 2017, Apple has been making iPhones in Tamil Nadu, India. But amid ongoing trade tensions between China and America, his decision to manufacture the new iPhone in India is considered important.

China’s ‘Zero Covid’ policy.

One of the main reasons why Apple manufactures its new phones in India is China’s ‘Zero Covid’ policy.

Due to this policy, the global supply chain of materials produced in China has been affected. Due to the restrictions imposed due to Corona, many industries in China have been closed and supplies around the world are being affected.

Apart from this, companies all over the world are trying to adopt the ‘plus one’ policy. Of course, they are looking for another option so as not to depend only on China for the production of their materials. For the past few decades, China has been known as the production center of the world. Now India is about to make itself a manufacturing center.

Companies manufacturing their goods in China are not trying to wait until China’s policy changes. Oscar de Bok, chief executive officer of DHL, a shipping company, says, “The company cannot wait for China’s policy to change.”

Companies cannot depend only on one place for the production of goods

Companies cannot depend only on one place for the production of goods. Companies are gradually trying to produce their materials from China to countries like India, Vietnam and Mexico.

In order to attract companies that are looking for alternatives to China for the production of materials, India is also giving personal incentives to large international companies that produce the same in their country.

low-cost labor force

Large international companies are also looking to manufacture their goods in India due to the large market, 6 to 7 percent annual growth in gross domestic product and low-cost labor force.

Being the third largest economy in Asia, India is attracting multinational companies to establish itself as a center of export and manufacturing.