Apple’s operations in India are projected to generate up to 600,000 jobs by the end of this financial year, highlighting the company’s significant expansion in the region as it seeks to reduce its reliance on Chinese production, according to a report by The Economic Times.
The Indian workforce for Apple is expected to include 200,000 direct positions by March next year, with women making up about 70 per cent of these roles, according to estimates and data provided by the company and its suppliers to the government.
The report quoted sources as saying that Apple’s three contract manufacturers in India — Foxconn, Wistron (now Tata Electronics), and Pegatron — have already created 80,872 direct jobs. Additionally, broader suppliers like Tata Group, Salcomp, Motherson, Foxlink (in Tamil Nadu), Sunwoda (in Uttar Pradesh), ATL (in Haryana), and Jabil (in Maharashtra) have collectively added around 84,000 direct jobs, the report said.
Apple has emerged as the largest single creator of blue-collar jobs in India in recent years, with a workforce primarily composed of women and newcomers to the industry, the report further stated.
The report quoted an official as saying, “Overall, Apple vendors and suppliers have created around 165,000 direct jobs since the inception of the smartphone PLI (production-linked incentive) scheme in 2020.”
iPhone production facility in Tamil Nadu
Tata Group’s dual facility in Hosur, Tamil Nadu, is projected to employ around 50,000 people over time. The iPhone production unit, which is located next to the group’s enclosure manufacturing plant, is scheduled to begin commercial production of iPhones this October. The production capacity will be expanded gradually, the report said.
The government has projected that for every direct position in the electronics industry, three additional indirect jobs are created. This implies that the Apple ecosystem could generate between 500,000 and 600,000 jobs by the end of March.
When the smartphone PLI scheme was introduced in 2020, it aimed to create 200,000 direct jobs. Although the scheme was designed to achieve this target through 10 selected companies over five years, the Apple ecosystem has reached this goal in just four years, the report said.
Apple has successfully implemented its China model in India, mirroring its approach to building a comprehensive ecosystem and creating significant employment opportunities. Over the past 25 years, Apple is reported to have generated more than 4 million jobs in China within its manufacturing and app development sectors, the report stated.
Apple has become the first major global value chain (GVC) to swiftly relocate a segment of its supply chain from China to India.
Starting in 2021, Apple began assembling iPhones in India for the first time outside of China. Since then, iPhone production in India has consistently increased through Apple’s three contract manufacturers, with production reaching Rs 1.20 trillion in FY24, of which Rs 85,000 crore was exported.
The latest Economic Survey highlights that India now accounts for about 14 per cent of Apple’s total production, marking a significant rise from around 7 per cent in FY23 and establishing itself as a crucial centre for the company’s global exports.
First Published: Aug 27 2024 | 12:11 PM IST
