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In a significant policy shift, the Indian government has announced that imports of Macs and iPads will now require a license, effective immediately. This move is seen as part of the government’s “Made in India” strategy, aimed at encouraging global brands like Apple to set up local manufacturing plants for their products within the country. By using both incentives and restrictions, India seeks to bolster its manufacturing sector and boost local production of tech products, including Apple’s coveted devices.
India’s “Made in India” initiative is a long-running program designed to promote domestic manufacturing by global brands, enabling them to sell products locally and for export. To encourage companies like Apple to invest in local production, the Indian government has imposed import tariffs on consumer electronics while allowing duty-free import of components.
Apple, Cupertino’s tech giant, encountered the Indian government’s stringent approach when seeking permission to open retail stores in the country. The government required the company to manufacture a certain percentage of iPhones in India before granting retail licenses. Consequently, the first Indian Apple Stores opened their doors only recently.
Initially, Apple limited iPhone assembly in India to the iPhone SE in 2017. However, production later expanded to include the entire iPhone range, with the iPhone 14 being assembled in India last year. The trend is set to continue, as both China and India are expected to begin simultaneous assembly of the upcoming iPhone 15 this year.
Reports indicate that India’s role in iPhone production is on the rise. Forecasts suggest that by 2025, a quarter of all iPhones could be manufactured in India. Moreover, by 2027, India might account for up to 50% of global iPhone production. This rapid growth can be attributed to the Indian government’s attractive tax incentives for local assembly, motivating Apple to increase its manufacturing operations in the country.
To further encourage local production and reduce dependency on foreign-manufactured tech products, the Indian government has now implemented controls requiring a license for importing five categories of computing products. Among them are the iPad, MacBook Air and MacBook Pro, iMac, Mac mini, Mac Studio, and Mac Pro.
TechCrunch reports that the Ministry of Commerce and Industry made this announcement. The notification issued by the government restricts the import of laptops, tablets, all-in-one personal computers, and servers unless a valid license for restricted imports is obtained. However, this restriction does not apply to passengers carrying these devices in their baggage.
While this new requirement may appear like a formality, it serves as a clear message to global brands that the Indian government can control the number of permitted imports at any time. Apple is likely to be among the brands granted a license, as it has already committed to manufacturing iPads in India. Gradually shifting some Mac production to India will help the company reduce its reliance on China as a manufacturing hub.
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In the long term, both Apple and the Indian economy stand to benefit from India becoming another significant manufacturing center akin to China. As Apple ramps up local production, the potential for establishing a robust supply chain for components and increasing production volumes becomes more accessible, fostering growth and collaboration between Apple and India.
The Indian government’s decision to require a license for Mac and iPad imports signals its unwavering commitment to boost domestic manufacturing under the “Made in India” initiative. As Apple continues to expand its manufacturing operations in India, it embraces the opportunity to reduce its dependence on China while contributing to India’s economic growth. The “carrot-and-stick” approach employed by India is poised to drive further investments in local production, ultimately shaping India into a crucial player in the global tech manufacturing landscape.