Apple may shift some production to India under PLI scheme

Society of Corporate Compliance and Ethics (SCCE)
Contact

Society of Corporate Compliance and Ethics (SCCE)

Report on Supply Chain Compliance 3, no. 11 (May 28, 2020)

The Indian government announced a productivity-linked incentives (PLI) scheme[1] to attract electronics manufacturers to shift production to India. Apple Inc. is reportedly ready to shift some production from China to India[2] that may boost Indian exports by around USD 40 billion.

The Indian Ministry of Electronics and Information Technology said that the Indian electronics markets suffer from a “lack of adequate infrastructure, domestic supply chain and logistics; high cost of finance; inadequate availability of quality power; limited design capabilities and focus on R&D by the industry; and inadequacies in skill development.”

The PLI scheme does not require companies to invest in India’s infrastructure, but rather maintain a certain level and value of production. The lack of infrastructure, as well as a clause in the scheme that values the entire plant and machinery already in use in facilities across China and other places at 40% of that value, may deter certain companies.

India’s announcement comes as companies are moving to diversify supply chains and create some resiliency in the face of trade wars and a pandemic that has caused major disruption to global supply chains centered in China.

1 “Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing,” Government of India, Ministry of Electronics & Information Technology, updated on April 9, 2020, https://bit.ly/3ga4znO.
2 Anandita Singh Mankotia, “Apple may take a bigger bite of India’s manufacturing pie,” ET Tech, May 11, 2020, https://bit.ly/3e5gxNz.

[View source.]

Written by:

Society of Corporate Compliance and Ethics (SCCE)
Contact
more
less

Society of Corporate Compliance and Ethics (SCCE) on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.