India’s Surge in Smartphone Manufacturing: A Shift from China?
In recent discussions, the focus has shifted to Apple’s ongoing efforts to diminish its dependency on China for iPhone production, with India being touted as a potential alternative manufacturing hub. While Apple has made incremental progress by increasing its iPhone assembly in India, it still lags considerably behind the volume produced in China. However, changes are underway that could narrow this gap.
Elimination of Import Duties Marks a New Era
The Indian government has recently eliminated import taxes on essential smartphone components such as printed circuit boards (PCBs), camera module parts, and USB cables. This strategic move is designed to elevate domestic smartphone production and is expected to benefit major players like Apple and Xiaomi significantly.
India Climbs Ranks in Global Manufacturing
Having emerged as the second-largest mobile phone manufacturing nation globally, India continues to trail behind China but is making impressive strides. The country’s electronics production has seen substantial growth over the past six years, surging past $115 billion as projected for 2024.
Tapping into U.S.-China Trade Tensions
In light of escalating U.S.-China trade disputes, India aims to seize this opportunity by solidifying its position within global supply chains. As reported by Reuters, India’s intricate tariff system has often been viewed as an obstacle to efficient local manufacturing and a source of contention among producers. The recent elimination of certain tariffs may serve as a pivotal step towards streamlining processes for companies like Apple and Xiaomi that are considering relocating their operations from China.
