Apple iPhone Supplier is entering Tech Investment's Wave in India.
India has seen an rise in inward investment, with Google , Facebook and others pouring nearly USD 20 billion dollars into Jio Platforms.
Apple assembly partner Pegatron is planning for its first plant in India, contributing to this year's significant influx of foreign tech investments into the region. The government rolled out a $6.6 billion program in June 2020 to attract the world's biggest mobile makers, offering financial rewards and ready-to-use fabrication clusters. Pegatron is now forming a local subsidiary and joining fellow Taiwanese electronics assemblers Foxconn Technology Group and Wistron, who have already made some iPhone handsets in South India.
With number of factories in China, Pegatron is the second-largest iPhone assembler, and more than half of its market relies on Apple. It will be set up in the south of India,. According to Matthew Kanterman of Bloomberg Intelligence. Foxconn is, also known as Hon Hai and Wistron are looking to expand their operations in the country, and Pegatron 's entry can be seen as a defensive move to protect its share of iPhone output in the budget.
Google has committed to investing $10 billion (Rs. 75,000 crores) over the next five to seven years to drive India's digital transformation, and Amazon.com has said it plans to sell $10 billion of Indian-made goods by 2025.
The country provides a huge pool of skilled labor, as well as a one billion mobile domestic sector. Nonetheless, only about half of those are smartphones, leaving untapped potential appealing to global growth-hungry brands such as Apple, Samsung Electronics, Xiaomi, and Oppo. Exports would also be an attractive opportunity for assemblers like Pegatron, especially at a time when trade ties between Washington and Beijing are deteriorating, making it imperative to have a diverse geographical base.
Smartphones are a focal point of the much-touched Make in India campaign by Prime Minister Narendra Modi. According to Ravi Shankar Prasad, IT and electronics minister, aim is for brands and manufacturers to transport the entire supply chain to the country, not just the final stage assembly.
According to Indian Cellular & Electronics Association chairman Pankaj Mohindroo, India will become a global manufacturing hub for both components and the full assembly of smartphones and other products, said . Three dozen members of the alliance include Apple, Foxconn, Google, Wistron, Oppo, and others.
The focus is shifting from making for India to exports, and the $400 billion electronics manufacturing that India is targeting by 2025 will be dominated by exports.