Apple suppliers are moving production from China to India

The Times of India reported that a manufacturer in Apple's supply chain is moving six production lines from China to India in order to meet the needs of the Indian market while exporting about $5 billion worth of iPhones from India.

Sources revealed that the production line relocation is expected to create employment opportunities for about 55,000 Indian workers of AMEC in about a year. In the next few years, these manufacturers may expand their business scope from mobile phones to tablets and even computers.

As tensions between China and the United States continue to escalate, several technology giants are looking to diversify their production supply chains, and India is taking this opportunity to become a part of the supply chain.

According to the report, Apple's contract manufacturers Wistron, Pegatron, Foxconn, Samsung and Indian mobile phone manufacturers Dixon Lava and Micromax will produce mobile phones under the government's incentive plan. Foxconn already has a factory, and Wistron and Pegatron may follow suit.

Communications and IT Minister Ravi Shankar Prasad said a total of 22 domestic and global companies had applied for the scheme, with production to reach Rs 1.15 lakh crore and exports expected to reach Rs 7 lakh crore over the next five years. The total investment in the scheme is estimated to be around Rs 1.1 lakh crore.

Prasad's ministry has been in talks with global giants to secure their investments in India, one of the world's largest smartphone markets, which can register companies like Pegatron in a day. Meanwhile, global tech giants like Facebook and Google have also recently invested in Reliance Jio, which is making inroads into the Android-based smartphone business at affordable prices.