Apple is reportedly seeking permission of Government of India to set up manufacturing units in India to produce iPhones and iPads. The Wall Street Journal reported that the plan for Apple to set up units in India could soon be successful. Tim Cook earlier clarified that the company would be setting up manufacturing units in India and they are having discussions with Indian Government for the same.
The plan from Apple has come after Donald Trump had won US elections and Trump is reluctant towards China trade policy. Trump wants Apple to produce products anywhere outside China. This made Tim Cook explore the opportunities around the world. Currently, India is the third largest producer of mobile phones after China and US. It is estimated that India would be in the second spot by 2017 behind China and replacing the US.
Also, the decision to produce Apple products in India has come after Foxconn and HMD global which are major contract producers of Apple are reluctant to set up manufacturing units in the US to replace china as the production cost would surge if they produce in the US.
It is likely that Apple would be opening its offline retail stores in India immediately after it starts producing native phones. The government of India has put restrictions on single brand retailers to use 30% of manufacturing materials from India which made it difficult for Apple as they did not have manufacturing plants in India. This idea to set up the manufacturing units would pave path to open retail stores in India
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