Apple to Generate 600,000 Jobs in India by FY25 Amid Manufacturing Expansion

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27 Aug 2024
5 min read

News Synopsis

Tech giant Apple is on track to generate approximately 600,000 jobs in India by the conclusion of the fiscal year 2025 (FY25), according to a recent report. This surge in employment is linked to Apple's strategic expansion of its manufacturing operations in India, a move aimed at reducing its reliance on China.

In an effort to diversify its supply chain, Apple is expected to directly employ 200,000 workers in India by the end of FY25, with a significant 70% of these positions anticipated to be filled by women, as reported by a news agency. This shift marks a substantial increase in the company’s workforce in the region.

According to government estimates, every direct job in the electronics sector generates an additional three indirect jobs. Therefore, Apple's growing ecosystem in India has the potential to create between 500,000 and 600,000 jobs by FY25, further bolstering the country's employment landscape.

Apple's Local Ecosystem: A Growing Powerhouse

The report, citing government officials, highlighted that iPhone assemblers and suppliers such as Foxconn, Tata, Pegatron, Foxlink, Salcomp, and Motherson have collectively generated 165,000 direct jobs in India since the launch of the smartphone production-linked incentive (PLI) scheme in 2020. This scheme has been pivotal in accelerating Apple's local manufacturing efforts.

This development coincides with Apple's aggressive push to expand its operations in India as the company seeks to shift its existing supply chain from China. Currently, one out of every seven iPhones is manufactured in India, and Apple has also begun sourcing components locally. The tech giant aims to produce 25% of all iPhones in India over the next three to four years, a significant increase from the current 14%.

iPhone 16 Pro and Pro Max Production in India

Recently, reports indicated that Apple has started training workers at its Tamil Nadu plant to produce the iPhone 16 Pro and Pro Max models. Apple’s manufacturing partner, Foxconn, is reportedly poised to commence assembly of these premium devices “within weeks” of their global launch, marking a significant milestone in Apple's India operations.

In addition, Apple is reportedly in advanced discussions with Murugappa Group and Tata Group’s Titan to manufacture iPhone camera modules domestically. Beyond iPhones, Apple is also exploring the possibility of manufacturing other flagship devices, including iPads and AirPods, within the country.

Tata Electronics' New Plant to Boost Apple's India Operations

Tata Electronics is currently setting up its second iPhone manufacturing plant in India, located in Tamil Nadu. This facility is expected to begin operations in November, providing a significant boost to Apple’s ambitions to ramp up production in the country.

Apple's focus on India is not without reason. The country is becoming an increasingly critical market for the iPhone maker, with its annual sales in India reaching nearly $8 billion in the 12 months leading up to March 2024. During Apple’s Q3 FY24 earnings call, senior executives revealed that the company set a new revenue record for the June quarter in India, driven by strong sales of Macbooks.

Conclusion:

Apple's strategic shift towards expanding its manufacturing operations in India is set to have a profound impact on the country's job market, with an estimated 600,000 jobs likely to be created by FY25. This move not only underscores India's growing significance in Apple's global supply chain but also reflects the company's broader efforts to diversify beyond China.

As Apple continues to scale up production and invest in local partnerships, India is poised to become a major hub for iPhone manufacturing and other flagship devices, further solidifying its role as a key market for the tech giant. With increasing domestic production and strong sales, Apple’s India operations are on a robust growth trajectory, promising significant economic benefits and enhanced employment opportunities in the region.

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