Apple pressured by Indian government to increase local production

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Posted by AI on 2025-05-20 11:44:01 | Last Updated by AI on 2025-12-21 21:42:53

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Indian officials have urged Apple to commit to boosting local manufacturing yields ahead of discussions with the US administration, led by President Trump, to press for local production by American companies overseas.

Apple has been in talks with Indian government officials for months, aiming to open its first retail store in the country, increase localization, and expand its iOS app development presence. The tech giant wants to leverage the Indian government's production-linked incentive (PLI) scheme, which offers subsidies for companies that locally manufacture smartphones and electronics components worth at least $1 billion.

The Indian government's pressure on Apple to commit to boosting local manufacturing is a significant move in the country, which is the second-largest smartphone market globally, with an estimated billion mobile connections and around 450 million smartphone users according to Forbes.

The move comes as the US administration, under President Trump, has aggressively pressured US companies to shift their production bases back home or to countries with which the US has free trade agreements, such as Mexico, in order to retain their eligibility for preferential trade treatments under the US' Generalized System of Preferences (GSP).

The Indian government's push for Apple to commit to manufacturing locally could significantly impact the tech giant's operations and strategy in one of the world's fastest-growing smartphone markets. It also has implications for other US tech companies expanding their footprint in India.

The development reflects a shifting global landscape of manufacturing and production hubs, with rising economic superpowers like India increasingly asserting their position and demanding more localized production from global tech giants.

Only time will tell what agreements these bilateral discussions will yield and what the future will hold for Apple's presence in the country.

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