Apple’s smartphone assembler Pegatron to set up plant in India
The ‘Make in India’ initiative by the Narendra Modi-led NDA government gets another boost as Pegatron is all set to open its first plant in India. Pegatron is Apple’s smartphone assembler. Apple’s other two smartphone assemblers, Foxconn and Wistron already have multiple assembly plants in India.
Pegatron is Apple’s second-largest iPhone assembler in the world. Pegatron’s decision is seen as an impact of the lucrative investment offers made by the government of India to encourage multinational brands to invest in India. In June, the Indian government set out a $6.6 billion plan to woo the world’s top smartphone manufacturers, offering financial incentives and ready-to-use manufacturing clusters.
Like its fellow assemblers, Pegatron is expected to set up its plant in southern India. Taiwanese electronics assemblers Foxconn Technology Group and Wistron Corp have already been making iPhone handsets in southern India.
Since the beginning of the trade war between the US and China, Apple has been gradually reducing its dependence on China. It is under this bid that Apple is encouraging its partners to shift their bases out of China to other Asian countries.
Apple will now be manufacturing its handsets in India for exports. Initially, the plan was to produce iPhones in India solely for internal consumption. However, with an increase in negative sentiments against China, Apple is now exploring favorable options.