{"id":10236,"date":"2022-10-12T13:37:05","date_gmt":"2022-10-12T13:37:05","guid":{"rendered":"https:\/\/www.africa-press.net\/sierra-leone\/all-news\/iphone-14-can-india-replace-china-as-the-worlds-factory"},"modified":"2022-10-12T13:40:47","modified_gmt":"2022-10-12T13:40:47","slug":"iphone-14-can-india-replace-china-as-the-worlds-factory","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/sierra-leone\/all-news\/iphone-14-can-india-replace-china-as-the-worlds-factory","title":{"rendered":"iPhone 14: Can India replace China as the world\u2019s factory?"},"content":{"rendered":"

Africa-Press – Sierra-Leone. <\/strong><\/span>Last week, Apple announced plans to make its latest phone model \u2013 iPhone 14 \u2013 in India, a significant milestone in the company\u2019s strategy to diversify manufacturing outside of China.<\/p>\n

Five percent of iPhone 14 production is expected to shift to the country this year, much sooner than analysts had anticipated.<\/p>\n

By 2025, a quarter of all iPhones the company makes could be produced in India, say analysts at investment bank JP Morgan.<\/p>\n

Apple has been manufacturing iPhones in the southern Indian state of Tamil Nadu since 2017.<\/p>\n

But the decision to make their flagship model in India is a noteworthy step as trade tensions between Beijing and Washington show no signs of letting up.<\/p>\n

The move also assumes significance in the backdrop of the global supply chain \u201cde-risking\u201d which is underway because of China\u2019s \u201czero-Covid\u201d policy.<\/p>\n

Beijing\u2019s hard-line approach to eradicating the pandemic has led to industrial lockouts and large-scale supply chain disruptions<\/p>\n

As a result, global firms are increasingly adopting a \u201cplus one\u201d strategy \u2013 or avoiding investing in China alone \u2013 to re-orient their supply chains.<\/p>\n

\u201cCompanies are no longer willing to sit and wait for a policy change in China, or put their eggs in one basket for their sourcing needs,\u201d Oscar De Bok, CEO of logistics company DHL\u2019s supply chain business, told the BBC.<\/p>\n

\u201cThey want to make sure they have two or three alternatives,\u201d said Mr De Bok, adding that this trend towards \u201comni-sourcing\u201d had clear beneficiaries in countries like India, Vietnam and Mexico.<\/p>\n

Mr De Bok was in India\u2019s financial capital Mumbai to announce a \u20ac500mn ($49mn; \u00a343mn) investment to double DHL\u2019s warehousing capacity and headcount in the next five years.<\/p>\n

He said this commitment was driven, in part, by the growth of foreign investment in sectors such as manufacturing and electronics where Prime Minister Narendra Modi\u2019s government has been offering financial incentives to companies that are keen on making India their production hub.<\/p>\n

As part of this production-linked incentives (PLI) scheme, mining conglomerate Vedanta Resources has also earmarked investments of close to $20bn (\u00a317bn) to set up a semiconductor plant in India in collaboration with the Taiwanese electronics manufacturing giant Foxconn.<\/p>\n

Anil Agarwal, Chairman of Vedanta Resources, said last month that the world was looking to adopt a \u201cChina plus one\u201d strategy and that \u201cIndia is clearly in a sweet spot\u201d.<\/p>\n

India, which is Asia\u2019s third largest economy, has been working hard to position itself as an attractive manufacturing and exports hub for multinationals.<\/p>\n

It has a large domestic market and plentiful low-cost talent.<\/p>\n

With GDP growth in the range of 6-7%, and headline inflation that\u2019s more modest than in many other parts of the world, India has been one of the better-performing major economies this year.<\/p>\n

Its merchandise exports crossed the $400bn mark after stagnating at the $300bn ballpark for nearly a decade.<\/p>\n

Besides fiscal sops, Mr Modi\u2019s administration has also been giving a major push to bilateral trade pacts in a bid to integrate India more deeply into global supply chains and rejig its image as a notoriously slow negotiating partner.<\/p>\n

Businesses have welcomed these initiatives.<\/p>\n

But India\u2019s approach to trade liberalisation, experts say, has been one step forward three steps back.<\/p>\n

The rush to sign free trade agreements to improve market access and reduce tariffs has been accompanied by rallying cries of self-reliance and duties going up on at least 3,000 items, many of them on critical inputs in manufacturing processes.<\/p>\n

Privately, many foreign companies also complain about the lack of a level playing field and growing protectionism.<\/p>\n

Small and medium-sized companies \u2013 the backbone of India\u2019s economy \u2013 continue to find it hard to navigate India\u2019s byzantine bureaucracy. Truly disruptive reforms on land acquisition and quicker licensing have been elusive, experts say. And rickety infrastructure remains a major sticking point.<\/p>\n

\u201cApple is certainly a success story so far but making India a manufacturing hub will require not just big-ticket headline grabbing investments but also a supportive ecosystem for SMEs [Small and Medium Enterprises],\u201d says Mihir Sharma, director at the Observer Research Foundation (ORF).<\/p>\n

\u201cIt is too early to tell if all these investments will be made at scale, and whether they will be sustainable over time.\u201d<\/p>\n

Mr Sharma says SMEs \u2013 which employ a bulk of India\u2019s workforce \u2013 have been largely left out of Mr Modi\u2019s fiscal incentives scheme.<\/p>\n

According to ORF, barring textiles and apparel, the scheme doesn\u2019t cover other labour-intensive manufacturing industries which could enable India to meaningfully leverage the plus-one strategy of export-led growth and create jobs for the 12mn Indians joining the workforce every year.<\/p>\n

Mr Sharma adds that India will need to upskill its workforce and create \u201ca more welcoming business climate\u201d to be able to compete with other Asian economies.<\/p>\n

Thailand, Vietnam and South Korea \u2013 all stand significantly above India in the World Bank\u2019s Ease of Doing Business rankings. Vietnam has also created a 2030 master plan to build an integrated infrastructure corridor critical for mass manufacturing.<\/p>\n

But despite these timeworn challenges, India is in a better position than ever before to leverage this \u201chistoric opportunity\u201d, says Alex Capri, Research Fellow at the Hinrich Foundation.<\/p>\n

He says that certain \u201ckey concentrated nodes\u201d in India \u2013 southern states such as Tamil Nadu, Telangana, and the National Capital Region in the north \u2013 are well poised to develop a critical mass in manufacturing, as the US and its allies decouple from China.<\/p>\n

This is likely to unleash an era of competitive federalism among the states.<\/p>\n

India could also benefit from Taiwanese tech companies moving capacity to the country under \u201cfriend-shoring\u201d arrangements to take advantage of the easy availability of cheap talent, Mr Capri adds.<\/p>\n

So is this a tipping point?<\/p>\n

\u201cOne of my Indian friends told me, India never misses an opportunity….. to miss an opportunity. But I think this time it is different,\u201d Mr Capri says.<\/p>\n

 <\/p>\n

For More News And Analysis About Sierra-Leone<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Sierra-Leone. Last week, Apple announced plans to make its latest phone model \u2013 iPhone 14 \u2013 in India, a significant milestone in the company\u2019s strategy to diversify manufacturing outside of China. Five percent of iPhone 14 production is expected to shift to the country this year, much sooner than analysts had anticipated. By […]<\/p>\n","protected":false},"author":84,"featured_media":10235,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,9],"tags":[291,293,292],"class_list":["post-10236","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-miscellaneous","tag-africa-press","tag-africa-press-sierra-leone","tag-sierra-leone"],"yoast_head":"\niPhone 14: Can India replace China as the world\u2019s factory? - Sierra Leone<\/title>\n<meta name=\"description\" content=\"Last week, Apple announced plans to make its latest phone model \u2013 iPhone 14 \u2013 in India, a significant milestone in the c ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/sierra-leone\/all-news\/iphone-14-can-india-replace-china-as-the-worlds-factory\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"iPhone 14: Can India replace China as the world\u2019s factory?\" \/>\n<meta property=\"og:description\" content=\"Last week, Apple announced plans to make its latest phone model \u2013 iPhone 14 \u2013 in India, a significant milestone in the c ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/sierra-leone\/all-news\/iphone-14-can-india-replace-china-as-the-worlds-factory\" \/>\n<meta property=\"og:site_name\" content=\"Sierra Leone\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-10-12T13:37:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-10-12T13:40:47+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/sierra-leone\/sites\/16\/2022\/10\/postQueueImg_1-6346c3bce60e2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"784\" \/>\n\t<meta property=\"og:image:height\" content=\"402\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/sierra-leone\/all-news\/iphone-14-can-india-replace-china-as-the-worlds-factory#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/sierra-leone\/all-news\/iphone-14-can-india-replace-china-as-the-worlds-factory\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/sierra-leone\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"iPhone 14: Can India replace China as the world\u2019s factory?\",\"datePublished\":\"2022-10-12T13:37:05+00:00\",\"dateModified\":\"2022-10-12T13:40:47+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/sierra-leone\/all-news\/iphone-14-can-india-replace-china-as-the-worlds-factory\"},\"wordCount\":998,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/sierra-leone\/all-news\/iphone-14-can-india-replace-china-as-the-worlds-factory#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/sierra-leone\/sites\/16\/2022\/10\/postQueueImg_1-6346c3bce60e2.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Sierra-Leone\",\"Sierra-Leone\"],\"articleSection\":[\"all news\",\"miscellaneous\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/sierra-leone\/all-news\/iphone-14-can-india-replace-china-as-the-worlds-factory#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/sierra-leone\/all-news\/iphone-14-can-india-replace-china-as-the-worlds-factory\",\"url\":\"https:\/\/www.africa-press.net\/sierra-leone\/all-news\/iphone-14-can-india-replace-china-as-the-worlds-factory\",\"name\":\"iPhone 14: Can India replace China as the world\u2019s factory? 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