Summary
Apple plans to move most of its iPhone production destined for the U.S. from China to India. However, a recent trade agreement between the U.S. and China might impact India's manufacturing ambitions. Despite this, there are early signs of India gaining from changes in global supply chains.
Key Facts
- Apple is moving most of its iPhone production for the U.S. from China to India.
- The U.S. and China reached a trade agreement to lower import taxes on goods, which could affect India's manufacturing plans.
- U.S. tariffs on Chinese goods have dropped significantly, from 145% to 30%.
- India's export orders have recently surged, reaching a 14-year high according to a survey.
- India has agreed to a trade pact with the UK, reducing duties in sectors like whiskey and automobiles.
- India's government is encouraging foreign investment by opening up its markets after years of protectionist policies.
- Despite trade shifts, countries like Vietnam remain competitive in manufacturing, challenging India's position.
- India's government initiatives like the Production Linked Incentive (PLI) scheme have had limited success in boosting manufacturing growth.
