The current situation of COVID-19 has changed the dimensions of many businesses across the globe. Mainly, it has changed the businesses between China and the US. There are many plants of the world’s leading companies situated in China, and the world has a lot of dependency on this nation.
No one would have dreamt; China would become center for the world’s deadliest pandemic. This is forcing many businesses to shift to safer countries to continue production without any loss.
According to a report by Economic times, there would be increased production of iPhones and other phone models. This new change is coming due to the government easing a few rules in the Production Linked Incentive (PLI). There was a clause mentioned in the PLI specifying about evaluating the plant and the machinery that came from South Korea and China.
A committee of secretaries had met recently and dropped the clause. They have agreed to make a few more changes so that the plants can be shifted from china completely.
The Indian government is already in talks with Pegatron to relocate some of its manufacturing facilities to India. Pegatron is one of the Apple device manufacturers. This recent move aims to encourage US companies to make their manufacturing plants look more diverse than those in other countries.
Another clause has been added, as per which government would release Incentives, despite not meeting the industry’s targets. They have added another clause stating, relief would be given for the industries amidst, natural calamities, or prevailing special conditions such as COVID-19. Apple has been in talks with the government to shift its fifth of production capacity from China to India.
It is interesting to see, Apple is shifting its manufacturing to India, and we may expect some pricing adjustments. We may have to wait and see for a few months about how this would go.
Source: 1