Apple’s India Expansion: 600,000 Jobs by FY24

Apple’s expanding footprint in India is poised to create a significant number of jobs, potentially reaching 600,000 by the end of this financial year. This surge in employment comes as the tech giant diversifies its manufacturing base beyond China.

Reports suggest that Apple’s ecosystem in India could generate approximately 200,000 direct jobs by March 2025, with women making up over 70% of this workforce. Government estimates indicate that each direct job typically results in at least three indirect jobs, leading to the potential creation of 500,000 to 600,000 new employment opportunities.

Apple’s Indian contract manufacturers Foxconn, Tata Electronics (formerly Wistron), and Pegatron have generated 80,872 direct jobs. Additional suppliers, including Tata Group, Salcomp, Motherson, Foxlink, Sunwoda, ATL, and Jabil, have collectively added around 84,000 direct jobs. This rapid job creation has positioned Apple as the largest single creator of blue-collar jobs in India in recent years.

Apple’s expansion in India mirrors its successful model in China. Over the past 25 years, Apple reportedly generated more than 4 million jobs in China within its manufacturing and app development sectors. Apple is now the first major global value chain to swiftly relocate a segment of its supply chain from China to India.

Apple began assembling their iPhones in India in 2021 for the first time outside of China. Since then, iPhone production in India has steadily increased, reaching Rs 1.20 trillion in FY24, with Rs 85,000 crore of that total being exported. According to the latest Economic Survey, India now accounts for about 14% of Apple’s total production, up from approximately 7% in FY23.

The Tata Group is playing a pivotal role in Apple’s expansion in India. Its dual facility in Hosur, Tamil Nadu, is expected to employ around 50,000 people over time. The iPhone production unit, located adjacent to the group’s enclosure manufacturing plant, is scheduled to commence commercial production this October, with capacity gradually expanding.

Tamil Nadu has emerged as a crucial hub for Apple’s operations in India. Of the projected 200,000 direct jobs, nearly 90,000 are anticipated to come from iPhone and component factories operated by Foxconn and the Tatas in the state. A massive industrial housing facility, built at a cost of Rs 706.5 crore, was recently inaugurated to accommodate around 18,720 workers, primarily women employed at the Foxconn iPhone factory.

Apple is also enhancing its manufacturing capabilities in India. The company has initiated training programs for thousands of workers at its Tamil Nadu factory, aiming to produce the iPhone 16 Pro and Pro Max versions as close to their global release date as possible. It is expected that Apple will assemble these high-end models in India for the first time, through Foxconn at their Sriperumbudur facility.

The tech community is eagerly anticipating the launch of the iPhone 16 series, with Apple officially announcing the event titled “It’s Glowtime” for September 9. Four new iPhone 16 models are anticipated to be unveiled at the upcoming event, according to industry observers.

In a recent corporate development, Apple appointed insider Kevan Parekh as its new chief financial officer on August 26. Parekh will replace long-time executive Luca Maestri, who will step down from the role on January 1, 2025. This leadership change comes ahead of Apple’s multiple product launches this fall, which analysts have dubbed the biggest software upgrade for the iPhone, featuring artificial intelligence capabilities. These upgrades are crucial for Apple as it seeks to reverse a slowdown in global sales, particularly in China, and better compete with rivals who have already introduced AI-enhanced features.

The smartphone Production-Linked Incentive (PLI) scheme, launched in 2020, aimed to create 200,000 direct jobs through 10 selected companies over five years. Remarkably, the Apple ecosystem has achieved this target in just four years, showcasing the rapid pace of its expansion in India.

Apple’s success in India extends beyond job creation to building a comprehensive ecosystem. The company is developing housing complexes for its staff in various locations through public-private partnership models. SIPCOT is building most of the housing units, with additional contributions from the Tata Group and SPR India.

As Apple continues to invest in and expand its operations in India, it’s evident that the country is becoming a key part of the company’s global strategy. This expansion not only aids Apple in diversifying its manufacturing base but also contributes significantly to India’s economy through job creation and skill development. The success of this venture could encourage other global tech giants to view India as a major manufacturing hub, further enhancing the country’s position in the global tech industry.

The image added is for representation purposes only