Background: How India solicited iPhone assembly
The government’s Made in India initiative is a long-running program intended to encourage global brands to manufacture products within the country, both for local sale and for export.
For example, India has imposed import tariffs on consumer electronics products, but allowed components to be imported without customs payments.
One of the key bargaining chips used with Apple was refusing the Cupertino company permission to open retail stores in the country until it started manufacturing a certain proportion of iPhones there. This is reason that the first Indian Apple Stores opened only this year.
Apple initially limited Indian iPhone assembly to the iPhone SE back in 2017, but subsequently ramped up production to the full range – including the iPhone 14 last year. This year, iPhone 15 assembly is expected to begin simultaneously in both China and India.
A report last year suggested that a quarter of all iPhones could be made in India by 2025, and another this year went even further, indicating that India could account for 50% of global iPhone production by 2027.
iPad and Mac assembly next on India’s agenda
The Indian government first announced tax incentives for local assembly of tablets and computers back in 2021. Apple successfully negotiated a more generous deal in return for setting up iPad production lines in the country.
Having put in place the “carrot” in the form of tax cuts, the government now appears to be working on the “stick”: controls that would allow it to limit imports of foreign-manufactured iPads and Macs. A license is now required to import five categories of computing products, which would include the iPad, MacBook Air and MacBook Pro, iMac, Mac mini, Mac Studio, and Mac Pro.
TechCrunch reports that the announcement was made by the Ministry of Commerce and Industry.
India restricted import of laptops, tablets, other personal computers and servers with immediate effect on Thursday […]
“Import of laptops, tablets, all-in-one personal computers, and ultra small form factor computers and servers falling under HSN 8741 shall be ‘restricted,’” a government notification said, adding that the import will be allowed against a valid licence for restricted imports. The restriction will also not apply to passengers carrying the mentioned devices in their baggage.
