Apple Inc has plans to invest USD 1 billion in India as the Cupertino-headquartered tech giant is set to export ‘Made in India’ iPhones across the globe.
“Apple will be investing $1 billion in India through its partners. They have said the production will be used for meeting the demand for its products across global markets,” an official source told Times of India.
Apple will manufacture products in Foxconn’s Chennai factory. The source said “testing is under way” for the products to be made in India. Apple is currently making iPhone 6S and 7 here in the Bengaluru plant of Taiwanese contract manufacturer Wistron.
IT and electronics minister Ravi Shankar Prasad said the government has urged Apple to expand its manufacturing base in India. “Apple has started manufacturing iPhones in India... making components and are exporting as well... Apple is on board as far as India’s success story is concerned,” Prasad said.
Apple is reportedly looking at assembling more models in the country. "India will offer you Human Resource, investor-friendly policies, and incentives for making in India, and for exports," the minister said.
Apple is counting on local manufacturing to cater to India’s price sensitive market and compete with the likes of Samsung and OnePlus for a larger market share. The US tech giant believes increasing production in India would help the company meet the 30% local sourcing rule to open its own outlets here.