Apple continues to invest heavily in India for increasing production of its products, as part of its China +1 policy. The trend has recently garnered heightened attention from Donald Trump, as he spoke about the topic during his visit to Qatar. He said that he does not want Apple to build in India but instead build in the United States.
While Trump continues to push for Make in America policy, Apple does not appear to be moving away from the policy of finding the most suitable country to manufacture goods, taking into consideration the costs. It is a known fact that manufacturing in the United States is an expensive affair with heavy labour costs associated. In a exclusive comment obtained by CNBC, there is no change in Apple’s plans to build in India, according to a person with knowledge of the matter.
India to go deeper into the manufacturing value chain
At the event in Qatar, the United States President Donald Trump said, “I had a little problem with Tim Cook yesterday. I said to him, my friend, I am treating you very good… but now I hear you are building all over India. I don’t want you building in India.” The US-first policy has worked to some extent in favor of the Trump administration but it is to be seen if it is sustainable.
In light of Trump’s comments on manufacturing of Apple products in India, the Secrety General of the Electronic Industries Association of India (ELCINA) Rajoo Goel said “We need to go deeper into the value chain and do more of the components locally.”
Goel further added “It may slow things down a bit, but I really don’t think it is going to impact India that much. We are still doing a very small share of the global market for Apple,” referring to Trump’s stance on Indian electronic manufacturing of American products.
