“ The ultimate resource in economic development is people. It is people, not capital or raw materials that develop an economy.”
“Apple” , one of the top brands in the world, has come out as the greatest company to create a large number of blue-collar jobs in the electronics industry in India . According to the report released by business standards, mainly through the sales of its key vendors and their ecosystem of component suppliers in the country, the company has generated over 100,000 new direct jobs in the past 19 months.
The jobs were created under the government’s Production Linked Incentives (PLI) scheme which came into effect from August 2021, which aims to boost local small-scale manufacturing and create employment opportunities. The three vendors responsible for assembling the iPhone are Foxconn Hon Hai, Pegatron and Wistron. They have collectively generated 60% of the new jobs, which is already exceeding their second-year commitment to generate new jobs under the production linked incentive scheme by roughly 7000 new jobs, as well as out of the 100,000 jobs 35,500 have been generated by Foxconn and Pegatron which started production during this financial year.
In Tamil Nadu, Pegatron, which only started its production this financial year, has already become the second largest employer with 14,000 jobs , whereas Wistron in Karnataka has generated 12,800 jobs. Sources states that TATA’s electronics is Apple’s key component supplier for mechanical parts, has employed sustainable number of employees and also, the rest 40% of the jobs generated by Apple in India were generated by the company’s own ecosystem, which includes supplies of various components used to manufacture iPhone, these suppliers have collectively generated additional 40,000 jobs, which includes salcomp, avary, foxlink, sunwoda and jabil.
The Indian government has estimated that the production linked incentive scheme for smartphones would generate 200,000 direct jobs by 2025. However with Apple alone accounting for 100,000 jobs by early 2023. The success of the program has not only led to job creation but also accelerated the growth of the country’s electronics industry by making it a more attractive destination for global technology companies in view to expand their operations.
One of the primary goals of the PLI initiative was to generate employment, in which the scheme offers many economic initiatives to companies for sales of products made in domestic units. Setting up manufacturing facilities in India, led to motivate companies and to convince them to create jobs there. Apple, further, is shifting a portion of its electronics production from China to India, generating many more manufacturing jobs.
Certain factors which are responsible for Apple's success in India are. First, the company has been investing heavily in the country, with the motive to establish retail stores and manufacturing facilities . Second, India’s growing middle class has created a huge demand for Apple products , including the iPhone and iPad. Meeting this demand, Apple has been working with local suppliers and manufacturers to produce its products in India. This has not only created jobs but has also reduced costs and improved the company's supply chain.
In addition, Apple's investment in India had a positive impact on the country’s economy and also has generated a significant amount of revenue for the Indian government through taxes and other fees, and has also helped to boost local businesses by providing them with new opportunities for growth and development. Apple’s success in India has demonstrated its ability to succeed in even the most challenging markets.
DID YOU KNOW?
The iPhone was named the year’s best invention. The iPhone was awarded the coveted title of “invention of the year” by times magazine in 2007. Fans and experts alike had just bowled with the superior design, powerful OS, and impressive performance.
BY-
Sakshi
Hemant Singh