Kathmandu. On October 5, Apple announced that it would be making its new ‘iPhone 14’ in India. Five percent production of ‘iPhone 14’ will start in India from this year. Earlier Apple was manufacturing ‘i Phone’ in China.
According to investment expert JP Morgan, 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 his decision to make the new iPhone in India is considered important amid the ongoing trade tensions between China and the US.
One of the main reasons why Apple is making its new phones in India is China’s ‘Zero Covid’ policy.
The policy has affected the global supply chain of materials produced in China. Due to the restrictions imposed due to Corona, many industries in China have been closed and supplies are being affected around the world.
Apart from this, companies all over the world are trying to adopt ‘plus one’ policy. Of course, they are looking for another option so as not to rely solely on China to produce their stuff. For the past few decades, China has been known as the manufacturing hub of the world. Now India is going to make itself a manufacturing center.
Companies that make their goods in China are not trying to wait until China’s policy changes. Oscar de Bock, chief executive officer of shipping company DHL, says the company cannot wait for a change in China’s policy. Companies cannot depend on only one place for production of goods.
Companies are gradually trying to move their materials from China to countries such as India, Vietnam and Mexico.
To attract companies looking for alternatives to China for producing the material, India is also offering individual incentives to large international companies that produce it in their own country.
Large international companies are also looking to manufacture their goods in India due to the large market, 6 to 7 percent annual growth in GDP and low cost labor force.
Being the third largest economy in Asia, India has been attracting multinational companies to establish itself as a hub of exports and manufacturing.