• Invest
    Investment Suite
    Stocks
    Mutual Funds
    Future and Options
    IPO
    Exchange Traded Funds
    Commodity
    Stockcase (Stock Baskets)
    Currency
    Non Convertible Debentures
    Sovereign Gold Bond
    Exclusive
    NRI Account
    Private Client Group
    Features
    SipIt
    MTF
    Investment Suite
    Exclusive
    Features
  • Platform
    Product Suite
    Kotak Neo App & Web
    Nest Trading Terminal
    NEO Trade APIs
    Features and Tools
    MTF
    Securities Accepted as Collateral
    Margin Requirements
    Equity Screeners
    Payoff Analyzer
    Calculators
    SIP Calculator
    Lumpsum Calculator
    Brokerage Calculator
    Margin Calculator
    MTF Calculator
    SWP Calculator
    CAGR Calculator
    Simple Interest Calculator
    ELSS Calculator
    Step up SIP Calculator
    All Calculators
    Product Suite
    Features and Tools
    Calculators
  • Pricing
  • Research
    Research Calls
    Long Term calls
    Short Term calls
    Intraday calls
    Derivatives calls
    Pick of the week
    Top Monthly Picks
    Research Reports
    Fundamental Research Report
    Technical Research Report
    Derivative Research Report
    Research Calls
    Research Reports
  • Market
    Stocks
    Market Movers
    Large Cap
    Mid Cap
    Small Cap
    Indices
    Nifty 50
    Bank Nifty
    FinNifty
    Nifty Midcap India
    VIX
    All Indian Indices
    Mutual Funds
    SBI Mutual Funds
    HDFC Mutual Funds
    Axis Mutual Funds
    ICICI Prudential Mutual Funds
    Nippon India Mutual Funds
    All AMC's
    IPO
    Upcoming IPO
    Current IPO
    Closed IPO
    Recently Listed IPO
    Stocks
    Indices
    Mutual Funds
    IPO
  • Learn
    Resource
    Market Ready
    Kotak Insights
    Infographic
    Podcast
    Webinars
    Youtube Channel
    Quarterly Results
    Investing Guide
    Demat Account
    Trading Account
    Share Market
    Intraday Trading
    IPO
    Mutual Funds
    Commodities
    Currency
    Futures & Options
    Derivatives
    Margin Trading
    Events
    Budget 2024
    Muhurat Trading
    Share Market Holiday
    Market Outlook 2025
    Resource
    Investing Guide
    Events
  • Partner
    Business Associates
    Fund Expert
    Kotak Connect Plus
    Startup connect
  • Support
    FAQs
    Circulars
    Bulletins
    Contact Us
    Forms Download
    Get your Statement

Apple's India Bite and Make in India's Growing Momentum

  •  4 min read
  • 0
  • 0s ago
Apple's India Bite and Make in India's Growing Momentum

Kotak Insights | Date 25/05/2024

Apple Inc.’s growth in the Indian market is becoming interesting.

Apple's production output in India doubled in FY24 from the previous year, reaching a striking $14 billion worth of iPhones manufactured on Indian soil.

This milestone underscores Apple's deepening commitment to India and highlights a significant achievement for the nation.

That’s not all. The largest carmaker in the US, Tesla, is also looking to source critical components from India and expand its business in the country.

We could see the shift from China to India happening.

So, what’s driving this growth?

Is Apple planning to expand its manufacturing in India? How is all of this influencing the Indian manufacturing sector?

Let’s break it down…

Let's peel back the layers and see the data behind the growth:

  • Production Boom: Apple's India production skyrocketed from $7 billion in FY23 to a staggering $14 billion in FY24, a remarkable 100% increase.

This signifies a major shift in the company’s global manufacturing strategy, potentially leading to a more geographically balanced production base.

  • Market Share Taking a Bite: According to Bloomberg, roughly, 14% of all iPhones produced globally now come from India—that’s one in seven iPhones manufactured!

This is a significant step towards diversification for Apple's manufacturing footprint.

This surge in Apple's India output also has a ripple effect that extends far beyond factory floors.

You see, India is rapidly evolving into a major electronics and technology manufacturing hub.

Apple's expansion serves as a catalyst, and it could attract investments from other global players, creating a domino effect across the Indian tech ecosystem.

Building a Skilled Workforce: The influx of tech manufacturing necessitates a skilled workforce.

This will lead to increased focus on technical education and training programs.

A report by McKinsey & Company estimates that the Indian electronics industry has the potential to create up to 9 million jobs by 2030.

This could empower the Indian workforce and create high-value employment opportunities.

Moreover, a study by Assocham-EY predicts that India's electronics manufacturing sector's growth could generate over 1 million additional jobs by 2025.

This could be a significant boost for the Indian economy.

The presence of a leading tech giant like Apple incentivises the development of a robust and technologically advanced manufacturing ecosystem in India.

This includes fostering a network of local suppliers and ancillary industries, promoting domestic production capabilities, and attracting foreign direct investment (FDI).

This growth in India's tech manufacturing prowess is poised to benefit Apple and other stakeholders in the Indian tech landscape.

Startups and Tech Companies: A robust manufacturing ecosystem creates a fertile ground for local startups and tech companies to flourish.

Easier access to manufacturing facilities, a skilled workforce, and a supportive regulatory environment can accelerate their growth and innovation.

Global Tech Manufacturing Arena: India can potentially become a major player in the global tech manufacturing arena.

This strengthens India's position in the global supply chain and fosters a more competitive and geographically diversified manufacturing landscape, reducing dependence on any single region.

India's manufacturing sector is poised for a significant transformation driven by continued foreign investment and technological advancements:

Policy Tailwinds: The Indian government's "Make in India" initiative, which focuses on attracting foreign investment and promoting domestic manufacturing, is expected to receive further impetus.

Streamlined policies, regulations, and tax incentives can further incentivise tech giants like Apple to expand their operations and production capacity in India.

Innovation Hub: A growing emphasis on research and development (R&D) can push India towards becoming a hub for innovation in the tech manufacturing sector.

This will attract cutting-edge technology and empower local companies to contribute their innovations to the global tech landscape.

Conclusion

Overall, Apple's production surge in India marks a significant turning point for the country’s manufacturing sector.

With continued advancements and the right policy framework, India has the potential to become a global leader in tech manufacturing.

This could further translate to economic growth, skilled jobs, and innovation, making it a win for Apple and India's aspirations to become a powerhouse in global tech manufacturing.

India is taking a larger bite out of the global tech manufacturing pie!

We will see you next week with another exciting story!

Happy Learning!


Sources and References:

Disclaimer: The content of this blog is intended solely for educational purposes and should not be regarded as financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The securities and assets mentioned serve purely as illustrations only and should not be taken as recommendations for investment. Please note that the information presented is compiled from several secondary sources available on the internet and may change over time. We strongly advise consulting with a qualified financial advisor prior to making any investment decisions. Read the full disclaimer here.

Did you enjoy this article?

0 people liked this article.

What could we have done to make this article better?

Enjoy Free Demat Account Opening
+91 -

personImage
Enjoy Free Demat Account Opening
+91 -

N
N
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]