Apple to create 600,000 jobs in India

• Apple’s anticipated job creation in India is poised to be a transformative force within the economic landscape of the country.

Apple is on the verge of catalysing a significant transformation in India’s employment landscape with an expected creation of up to 600,000 jobs by the end of the fiscal year.

The strategic move is a crucial part of Apple’s broader initiative to diversify its operational footprint, primarily to reduce its dependence on China for production and capitalize on India’s burgeoning market.

The implications of this job creation are profound, affecting not only the economic landscape but also socio-cultural dynamics, particularly in terms of gender employment and regional development.

According to Apple’s estimates and data from its suppliers, the company is set to create 200,000 direct jobs by March 2024, with approximately 70 per cent of these positions earmarked for women.

The deliberate focus on female employment is noteworthy, symbolising a progressive shift in the workplace demographics within the manufacturing sector, which has largely been dominated by male workers.

By prioritising female talent, Apple is not merely fulfilling corporate social responsibilities but is also tapping into an underutilised resource, thereby enhancing productivity and fostering economic empowerment among women in India.

PLI scheme: A pivotal moment

The contributions of Apple’s primary manufacturers in India—Foxconn, Wistron (now Tata Electronics), and Pegatron—have collectively created nearly 80,872 direct jobs.

In addition, ancillary suppliers such as Tata Group, Salcomp, Motherson, Foxlink, Sunwoda, ATL, and Jabil have collectively added approximately 84,000 direct jobs, demonstrating a robust share of employment opportunities within the Apple supply chain.

The coalescence of direct and indirect employment places Apple as a pivotal player in the Indian economy, particularly in the blue-collar sector that traditionally faces challenges such as job security and fair employment practices.

The inception of the production-linked incentive (PLI) scheme for smartphones in 2020 marked a pivotal moment in this employment trajectory. Conceived as a five-year initiative aimed at creating 200,000 jobs, the Apple ecosystem’s pace in reaching this target within four years reflects a remarkable achievement that underscores the effectiveness of the scheme.

Since the program’s implementation, Apple’s direct job creation, estimated to have reached around 165,000, has catalysed further employment opportunities. With the government’s assertion that each direct job in electronics generates approximately three indirect jobs, the projected total employment could rise to between 500,000 to 600,000 jobs by March.

The implications for local economies, particularly in manufacturing hubs like Tamil Nadu, are particularly significant. Notably, Tata Group’s facility in Hosur, Tamil Nadu, is anticipated to hire around 50,000 workers, further amplifying the potential for local economic boost.

The iPhone manufacturing unit, scheduled to commence production in October, exemplifies the growth model of employing local labour while simultaneously enhancing the skill set of the workforce through on-the-job training and development initiatives.

Tamil Nadu is key

In recent years, Tamil Nadu has emerged as a nexus for electronics manufacturing, with Apple’s commitment exacerbating this trend. Approximately 90,000 of the newly created positions will emerge from Foxconn and Tata’s factories in this state.

Additionally, social infrastructure developments, such as the recently inaugurated housing complex by Tamil Nadu Chief Minister MK Stalin, designed to house 18,720 workers, primarily women, signal a commitment to improving the living conditions of employees, thus enhancing workforce retention and satisfaction.

In tandem with these developments, Apple’s suppliers are actively pursuing additional housing initiatives through public-private partnerships, further underpinning the company’s commitment to fostering a supportive ecosystem for its workforce.

Collaborations with entities like the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) and Tata Group solidify Apple’s role not just as a creator of jobs, but as a leading agent of change within local communities.

Currently, Apple’s vendors and suppliers employ about 150,000 individuals in India, with Tata Electronics leading as the most significant job generator within this framework.

The company’s ambition to scale up production in India by over five-fold—projecting an investment of around $40 billion (approximately Rs3.32 trillion) over the next four to five years—demonstrates a long-term commitment to the Indian market, further solidifying its role as a linchpin in the global supply chain.