India is quietly taking over more of Apple’s manufacturing from China, particularly in the South Indian industrial areas that were once farmland. In Sriperumbudur, people refer to Apple as “the customer,” not uttering the company’s name aloud due to its secretive nature. However, the massive dormitory complexes being built to house thousands of workers indicate Apple’s undeniable presence in the region.
For years, Foxconn, a Taiwanese company, has been a key player in iPhone production, with about 99 percent of iPhones being made in China as recently as 2019. However, India’s national manufacturing drive is challenging this dominance, with an estimated 13 percent of the world’s iPhones being assembled in India last year and about three-quarters of those being made in Tamil Nadu. Additionally, the volume produced in India is expected to double by next year.
Despite a national “Make in India” initiative and the country’s need for skilled jobs and increased productivity, manufacturing as a share of the economy has stagnated at about 16 percent. However, Tamil Nadu serves as a beacon of hope within India, with its strong focus on electronics manufacturing. The state has seen success due to its subsidies for electronics manufacturing and its inbuilt advantages such as schools, transport, and highly skilled workers.
Encouraged by this success, Tamil Nadu’s government is striving to compete not just with other Indian states, but with the growth of Scandinavian countries. The state’s focus on human capital, particularly women in the workforce, has set it apart from the rest of India. It is home to various industries, from car and car-part manufacturers to knitwear and matchstick manufacturing.
Sriperumbudur, the epicenter of India’s high-end electronics manufacturing, was initially attractive to companies due to its experience in auto manufacturing. The old Nokia site in Sriperumbudur, which was once expected to produce millions of phones a year for India and the rest of the world, was built over by Salcomp. The presence of a dozen other known and rumored Apple suppliers has solidified the region’s status as a hub for electronics manufacturing.
Looking ahead, Tamil Nadu’s industrial success shows the potential for India to compete in high-value electronics manufacturing and possibly even surpass China in global supply chains. With the establishment of new factories for electric vehicles and glass production, Tamil Nadu’s growth in the manufacturing sector is expected to continue.
Overall, Tamil Nadu’s success in electronics manufacturing presents opportunities for India to establish itself in high-value manufacturing and potentially create enough jobs to support its young and growing population. The state’s efforts to attract businesses making a wide range of products, from smartphones to non-leather footwear, are key to India’s future economic growth.