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PrimePress > Blog > Business > Apple shifting focus from China to India: Ecosystem could generate 600k jobs by March
Business

Apple shifting focus from China to India: Ecosystem could generate 600k jobs by March

PrimePress Team
Last updated: 2024/08/27 at 7:17 PM
PrimePress Team
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Apple shifting focus from China to India: Ecosystem could generate 600k jobs by March
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Apple Generates 600,000 Jobs in India: A Landmark Achievement

Apple’s operations in India are set to generate a significant number of employment opportunities, with projections indicating that the company’s ecosystem will create up to 600,000 jobs by the end of the current fiscal year. This growth reflects Apple’s aggressive expansion in the country as it aims to diversify its production away from China.

Empowering Women in the Workforce

According to estimates and data provided by Apple and its suppliers to the government, the company’s Indian workforce will consist of 200,000 direct jobs by the end of March, with an impressive 70% of these positions being held by women.

Indirect Job Growth

The government’s projections indicate that the electronics sector generates three indirect jobs for every direct job created. Based on this estimate, the Apple ecosystem could potentially generate between 500,000 and 600,000 jobs by the end of March.

Direct employees of Apple's three vendors

Direct employees of Apple’s three vendors

Blue-Collar Job Creation

Officials emphasize that Apple has emerged as the largest creator of blue-collar jobs in India over the past few years, with the majority of these positions being filled by women and first-time employees. “Overall, Apple vendors and suppliers have created around 165,000 direct jobs since the inception of smartphone PLI (production-linked incentive) scheme (in 2020),” an official familiar with the details said.

India’s Growing Contribution to Apple’s Production

The recent Economic Survey highlights that India currently contributes around 14% to Apple’s overall production, emerging as a crucial hub for its global exports. This share has doubled from about 7% in FY23, showcasing the growing importance of India in Apple’s manufacturing strategy.

Future Employment Prospects

The Tata Group’s manufacturing facilities in Hosur, Tamil Nadu, are set to significantly boost employment in the region. The iPhone manufacturing unit is expected to hire approximately 50,000 employees over time, with plans to commence commercial production in October.

Global Value Chain Leadership

Apple has become the first global value chain (GVC) to quickly shift a portion of its supply chain from China to India. The company began manufacturing iPhones in India in 2021, marking a historic milestone.

Steady Growth and Expansion

Since then, iPhone production in India has been steadily increasing through Apple’s contract manufacturers, reaching Rs 1.20 lakh crore in FY24, with Rs 85,000 crore being exported.

Creating Sustainable Communities

In addition to job creation, Apple’s vendors and suppliers are also investing in housing complexes for their employees in various regions in India, fostering sustainable communities.

Conclusion

Apple’s commitment to generating employment opportunities and building a strong manufacturing ecosystem in India is not only transforming the country’s electronics sector but also setting a new standard for global companies investing in the region.

PrimePress Team August 27, 2024 August 27, 2024
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