Apple’s shift away from China: The iPhone maker’s ecosystem could generate 6 lakh jobs in India by March

Apple’s operations in India are poised to create a substantial number of jobs, with projections suggesting that the company’s ecosystem will generate up to 600,000 positions by the end of the current fiscal year. This anticipated growth highlights Apple’s strategic push to expand its presence in India and reduce its reliance on production in China.

According to data from Apple and its suppliers shared with the government, the Indian workforce for Apple is expected to include 200,000 direct jobs by March, with an impressive 70% of these roles occupied by women.

The government estimates that the electronics sector creates three indirect jobs for every direct job. Based on this ratio, Apple’s ecosystem could potentially result in between 500,000 and 600,000 total jobs by the end of March.

Government officials reported to ET that Apple’s three contract manufacturers in India—Foxconn, Wistron (now Tata Electronics), and Pegatron—have already created 80,872 direct jobs. Furthermore, Apple’s broader supplier network, which includes companies such as the Tata Group, Salcomp, Motherson, Foxlink in Tamil Nadu, Sunwoda in Uttar Pradesh, ATL in Haryana, and Jabil in Maharashtra, has collectively generated around 84,000 direct jobs.

Officials note that Apple has become the largest provider of blue-collar jobs in India over recent years, with a significant portion of these roles filled by women and first-time employees.

“Since the launch of the smartphone PLI (production-linked incentive) scheme in 2020, Apple vendors and suppliers have generated approximately 165,000 direct jobs,” an official with knowledge of the matter stated.

The latest Economic Survey indicates that India now contributes about 14% to Apple’s total production, making it a key hub for the company’s global exports. This figure has doubled from around 7% in FY23, highlighting India’s increasing importance in Apple’s manufacturing strategy.

The Tata Group’s manufacturing facilities in Hosur, Tamil Nadu, are expected to greatly enhance employment in the area. The iPhone production unit, which will operate alongside the group’s enclosure manufacturing plant, is anticipated to hire around 50,000 employees over time. Officials noted that commercial production of iPhones is set to begin in October, with plans to gradually expand manufacturing capacity.

The smartphone PLI scheme, launched in 2020, initially aimed to generate 200,000 direct jobs over a five-year period through the efforts of 10 selected companies. Remarkably, the Apple ecosystem has already met this target in just four years.

Industry experts point out that Apple has effectively adapted its China model to India, creating a robust ecosystem that has led to substantial job creation. It is estimated that Apple has generated over 4 million jobs in China’s manufacturing and app development sectors over the past 25 years.

Apple has become the first global value chain (GVC) to swiftly relocate part of its supply chain from China to India. The company began manufacturing iPhones in India in 2021, marking its first production outside of China.

Since then, iPhone production in India has steadily increased through Apple’s three contract manufacturers, reaching a value of Rs 1.20 lakh crore in FY24, with Rs 85,000 crore in exports. It is important to note that these figures represent the freight on board (FOB) value at which a device leaves the factory, while retail prices are approximately 60% higher.

According to a senior industry official, of the 200,000 direct job opportunities anticipated, around 90,000 are expected to be created by the iPhone and component manufacturing facilities of Foxconn and Tata in Tamil Nadu. The state has established itself as a leader in the electronics manufacturing sector.

MK Stalin, the Chief Minister of Tamil Nadu, recently inaugurated a large industrial housing complex built at a cost of Rs 706.5 crore. This facility will accommodate approximately 18,720 workers, primarily women, employed at the Foxconn iPhone factory.

Alongside the housing complex in Sriperumbudur, Apple’s vendors and suppliers are also working on additional housing projects for their employees in various locations using a public-private partnership model. Most of these housing units are being developed by the State Industries Promotion Corporation of Tamil Nadu (SIPCOT), with the Tata Group and SPR India also participating in the construction of homes for their workforce.