Civil Aviation Minister Hardeep Singh Puri stated India is working on comparable agreements with the United Kingdom and Germany too.
Apple Inc assembly partner Pegatron Corp is making preparations for its first plant in India, adding to a large influx of foreign tech investments in the country this year. In June, the Indian government set out a $6.6 billion plan to woo the world’s top smartphone manufacturers, offering financial incentives and ready-to-use manufacturing clusters. Pegatron is now setting up a local subsidiary and joining fellow Taiwanese electronics assemblers Foxconn Technology Group and Wistron Corp, who have already been making some iPhone handsets in southern India.
What Bloomberg Intelligence says?
Pegatron could uphold its iPhone SE assembly market share, which may have grown from a 50-50 split with Hon Hai: Matthew Kanterman, analyst
India has seen a surge of inward investment in recent weeks, with Google, Facebook Inc and others pouring close to $20 billion into Jio Platforms Ltd, billionaire Mukesh Ambani’s mobile internet venture. Google has committed to spending $10 billion over the next five to seven years to hasten India’s digital transition and Amazon.com Inc has said it intends to export $10 billion of made-in-India goods by 2025. When Jeff Bezos visited the country in January, he said, “The 21st century is going to be the Indian century.”
The country offers a vast pool of skilled labor as well as a domestic market of a billion mobile connections. Only about half of those are smartphones, however, leaving untapped potential that is attractive to growth-hungry global brands like Apple, Samsung Electronics Co, Xiaomi Corp and Oppo. For assemblers like Pegatron, exports would also be an enticing opportunity, especially at a time of worsening trade relations between Washington and Beijing making it imperative to have a diverse geographic base.
Smartphones are a focal point for Prime Minister Narendra Modi’s much-touted Make in India program. Ravi Shankar Prasad, India’s minister for information technology and electronics, has said the goal is for brands and manufacturers to transport the entire supply chain to the country, not just the end-stage assembly. Quoted by local media, Prasad said India wants not only the “bridegroom” but also the “wedding procession.”