Apple Positions India As Manufacturing Hub, Scindia Says 'Makes Sense For Every OEM'

Apple's India Move: Union Telecommunications Minister, Jyotiraditya Scindia, on Tuesday informed investment in India at present is economically justified in every sense for an original equipment manufacturer (OEM).

Whilst positioning India as a manufacturing hub, the Central Minister cited the instance of Apple finalising it's call to majorly source iPhone in the U.S from this South Asian nation.

Speaking at the Bharat Telecom event, Scindia informed that the investment in India at present is not just an act of goodwill alone but it makes economic sense for every OEM (original equipment manufacturer).

"Apple has decided to source and produce all its mobile phones in India in the years to come," Scindia said, whilst adding that “when you invest in India, you are choosing affordability, you are choosing reliability, you are choosing originality.”

'Apple India-Centric Move Makes Economic Sense': Scindia

During Apple's recent earnings call, Tim Cook informed that the company will source majority of its iPhones sold in the U.S from India in the June quarter. Meanwhile, China would continue to produce vast majority of its devices for other markets amid uncertainty over tax tariffs.

The Union Telecom Minister said that the telecom equipment market aided by the government's production-linked incentive (PLI) scheme has witnessed multifold growth.

"Investment of Rs 4,000 crore, half a billion dollars alone, has resulted in sales of Rs 80,000 crore, Rs 16,000 crore in exports, (and) 25,000 jobs being created. Therefore, the telecom equipment market has also grown manifold in India," Scindia said.

Adding onto the positive sentiments hovering around India's manufacturing capabilities amid global uncertainties, Minister of State for Telecommunications Chandra Sekhar Pemmasani said India from being a large importer of mobile phones, around 2014, India has now become a large producer and exporter of mobile phones.

Last year, Apple significantly ramped up iPhone production in India, assembling $22 billion worth in the past year, a 60 per cent increase signaling a shift away from China.