Apple, the tech giant that has revolutionized the smartphone industry, is facing obstacles in its efforts to boost manufacturing in India, according to a report by the Financial Times. As the world’s second-most populous country, India presents a lucrative market for the company, but the path to increased production has not been without its challenges.
The COVID-19 pandemic has disrupted supply chains globally, and China’s strict measures to contain the virus have resulted in production delays and restrictions. In addition, the ongoing trade and geopolitical tensions between China and the US have led Apple to shift its production away from China and towards India, which has been promoting local manufacturing.
However, Apple has encountered difficulties in India, with only about half of the components from a casings factory in southern India meeting the company’s stringent quality standards. The low yield has slowed down Apple’s expansion in the country, with issues in logistics, tariffs, and infrastructure adding to the challenges.
Despite the setbacks, Apple is committed to boosting its presence in India and has set ambitious goals for local production. Last month, India’s trade minister announced that Apple plans to increase the country’s share of its production from 5-7% to as much as 25%.
The challenges faced by Apple in India underscore the complexities of global supply chains and the difficulties of shifting production to new locations. However, with its vast resources and expertise, the company is likely to overcome these obstacles and continue its growth trajectory in one of the world’s fastest-growing economies.