Apple’s India Ecosystem May Create 6 Lakh Jobs By FY25: Report

SUMMARY

Apple's plan to wean away from China and shift production to India may yield 6 Lakh jobs in the country by FY25

The Apple industrial ecosystem is expected to generate 2 Lakh direct jobs by the fiscal end. As per government's estimates, for every direct job in the electronics sector, 3 indirect jobs are created

This comes amid reports that Apple has begun training workers at its Tamil Nadu plant to manufacture iPhone 16 Pro and Pro Max models.

Tech giant Apple is likely to create 6 Lakh jobs in India by the end of this fiscal year (FY25) as the iPhone maker scales up production in the country in its bid to diversify beyond China.

In India, the company is expected to employ 2 Lakh workers by the end of the current fiscal year (FY25) directly, with women making up 70% of the workforce, ET reported.

As per government’s estimates, every direct job in the electronics sector spawns three indirect jobs, which means Apple’s local ecosystem could create anywhere from 5-6 Lakh jobs by FY25, the report added.

Citing government officials, the report further said that iPhone assemblers and suppliers, including Foxconn, Tata, Pegatron, Foxlink, Salcomp and Motherson among others, have cumulatively generated 1.65 Lakh direct jobs in India since the launch of the smartphone production-linked incentive (PLI) scheme in 2020.

The development comes at a time when Apple is making an aggressive play to expand operations in India as it shifts its existing supply chain away from China.

Now, 1 in 7 iPhones are manufactured in India with Apple also domestically sourcing components that go inside. Apple aims to manufacture 25% of all its iPhones in India over the next 3-4 years, up from the current 14%.

Recently, it was reported that Apple has begun training workers at its Tamil Nadu plant to manufacture iPhone 16 Pro and Pro Max models. Apple’s manufacturing partner Foxconn is reportedly likely to begin assembling these premium devices “within weeks” of the global launch.

Further, Apple is said to be in advanced talks with Murugappa Group and Tata Group’s Titan to make iPhone camera modules in the country. Apart from iPhones, Apple is also considering manufacturing other flagship devices, iPads and AirPods in the country.

With Tata Electronics setting up its second iPhone manufacturing plant in India, which is being built in Tamil Nadu and expected to start operations in November, Apple’s ambition to increase manufacturing in the country is expected to get a major boost.

And Apple’s India push is not without reason. India is increasingly becoming an important market for the iPhone maker, with its annual sales in the country reaching nearly $8 Bn in the 12 months through March 2024.

During Apple’s Q3 FY24 earnings call, senior executives said that the tech giant set a new June quarter revenue record in India, driven by robust sales of Macbooks.