Reducing China Dependence and aiming for substantial exports

TATA Electronics has tied up with two Indian manufacturers in Pune and Bengaluru to develop capabilities to work on developing very sophisticated and complex high-precision machines used to produce the casing of the iPhone, Economic Times reported.

The equipment can be found in the production lines of independent contractors that collaborate with multinational corporations like Apple. The action is anticipated to provide the government's $300 billion electronics export goal by 2025 with a significant boost.

Given the geopolitical conditions, this comes at a time when Apple is trying to diversify its manufacturer base to reduce its dependence on China.

According to the report, “The TATA Group is testing these machines in a staged manner at their Hosur facility. Part of the objective is to grow more of its local capability because the company is not just looking to build enclosures, it wants to develop the ecosystem in the country. These machines are just one of the many inputs that go into making a component or an enclosure that the company is looking at to reduce its exclusive dependence on certain parts.”

Ajai Chowdhry, co-founder of HCL, told Times of India, "Everybody wants casings, if TATA Group is able to do import substitution and they're able to make these machines in India, it will create an industry because so many people want casings. Anybody who wants to make a phone or a tablet in India needs casings and if they're able to adhere to Apple's stringent standards, it would be a high-quality machine in itself."

The program lays the groundwork for future exports in addition to increasing domestic output. Additionally, it can help India achieve its ambitious ambition of exporting $300 billion worth of electronics by 2025.

(With Agency Inputs)