(File photo)

NEW DELHI: American electronics giant Apple on Monday told the government that it will increase its manufacturing and financial commitment in India, and has also started export of devices from the country.

Shipments from Apple and other phone and component manufacturers is likely to see their exports double to $3.2 billion this fiscal, IT and electronics minister Ravi Shankar Prasad said on Monday.

Prasad met officials from the iPhone maker who told him that the company has started assembling the XR device at the Chennai factory of Taiwanese contract-maker Foxconn.

Apple had initially begun local assembly in India in 2017 through Wistron, another Taiwanese maker, that has a factory in Bangalore. Now, Foxconn is carrying out a major expansion for the company and cumulative investments in the project are pegged at nearly $1 billion, as reported by TOI in its September 17 editions.

“Apple’s growing engagement and the manufacturing of devices such as XR is a proud moment for India. Our focus on boosting electronics manufacturing, and the lower taxes of 15% for new manufacturing units, is a major factor that is aiding new investments,” Prasad said.

The minister said that much of the component exports from India are directed towards China, which currently fights a trade war with the US. “The National Electronics Policy announced earlier this year has been a major catalyst. The government wants India to become a preferred manufacturing destination for electronics to cater to the large domestic market needs as well as for exports.”

Apple’s growing engagement in India is also seeing a lot of component suppliers of the company set up base in Chennai around the Foxconn facility.

The move of an enhanced manufacturing in India may also be prompted by Apple’s desire to increase its share in India. Tim Cook, the global CEO of the company, has time and again highlighted the importance of India during his global conferences, and has said that Apple will increase its focus and commitments here.

And it’s not just Cook who has spoken about the aggressive plans for India. Foxconn group chairman Terry Gou has also said that the company is looking at beginning mass production of iPhones in India.

A strong local manufacturing will also help Apple avoid the 20% duty that the Indian government has mandated for those importing devices. The company feels that it can price its devices more aggressively in the market through the local production, and thus increase its sales in the world’s second-biggest smartphone market, behind only China.

