In recent years, the global manufacturing pattern is undergoing profound changes due to the lack of decoupling and disconnecting chains in China.
As the World Manufacturing Center, India faces many challenges.The most noticeable of these is that Apple and other multinational companies transfer some production lines from India to other countries, especially India.
Because of its abundant labor, Modi encouraged Western enterprises to invest in policies and gave a lot of discounts to mobile phones and chips.
This trend has attracted widespread attention and has also triggered in -depth discussions on the reconstruction of global supply chain.
Apple’s choice of India as one of the main destinations for its production line transfer is undoubtedly based on multiple considerations.
First of all, India has a huge demographic dividend and relatively low labor costs, which makes it have potential competitive advantages in the manufacturing field.
Secondly, India, as the second largest smartphone market in the world, has great market significance for Apple.By producing locally, Apple can better meet the needs of the Indian market while avoiding possible trade barriers.Pune Stock
Of course, Apple has transferred some assembly lines to India, and it can also adapt to the United States’ strategy to China.
However, frequent problems recently showed that Apple’s production strategy in India is facing many challenges.
Recently, a report on the Chinese website of the Arabian Peninsula TV states that Apple’s iPhone production plan in India has not been progressing smoothly.Various manufacturing defects occurred during the production process of iPhone 15 and iPhone 16, and major fires in the factory of an important iPhone component contract manufacturer also occurred.These problems not only affect the quality of the product, but also cause serious interference to Apple’s production plan.
There are many reasons for these problems. It shows that in order to make longer progress in manufacturing, there is still a long way to go.As the number of foreign companies transferred to India, the disadvantages of Indian manufacturing are increasingly exposed.This "spare tire" is a normal state.
First of all, although India has a lot of labor, the technical level and experience in the field of high -tech manufacturing are far from enough.Compared with the mature technical workers in India, although India ’s labor is low, it often lacks necessary technical training and experience.This leads to many problems when producing precision electronics like iPhone, and these problems will continue to increase with the upgrade of the product.
Secondly, India’s labor -capital relationship is complicated and the influence of unions has strong influence, which also brings additional challenges to foreign companies such as Apple.India’s labor law varies from regions to make it difficult for foreign companies to respond.Frequent strikes and protests have not only disrupted the production plan, but also increased the company’s operating costs.Recently, Samsung, South Korea, had a 37 -day strike in Kimner’s factory, which also caused a fierce conflict.It is said that the salary of workers in the Kimner Factory is top in India.
In addition, India’s infrastructure development level is far behind India.Although it has improved in recent years, India’s power supply, logistics and transportation infrastructure cannot meet the needs of the manufacturing industry.This not only increases operating costs, but also affects the efficiency of production and the timely delivery of products.Chennai Investment
Even if Apple transfers part of the assembly line to India, its production still relies heavily on India’s technology, equipment and intermediate products.The production of iPhone devices involves many high -tech components. These components usually require advanced technology and equipment, and these technologies and devices cannot achieve localized production in India in the short term.
Whether the iPhone made by India can be recognized by consumers is also unknown.If the iPhone in the Indian market is in the word "Indian assembly", will there be so many fruit chasing?
To achieve India’s efficiency and quality standards, India not only needs to improve technology and infrastructure, but also requires a labor team that can adapt to the characteristics of the manufacturing work.This involves not only skill training, but also the training of work attitude and professional spirit.
From a deeper point of view, the challenges facing India come from social structure and cultural factors.
Hinduism has a profound impact on social structure (such as the surname system), which limits the flexibility of the social liquidity and the labor market.This has sharp contradictions with the relatively secular and high social structure required to establish a modern manufacturing industry.
In the end, man is a decision factor.
For multinational companies such as Apple, the process of successfully transferring production lines from India to India is not an overnight process. It requires long -term patience.Ahmedabad Stock
Apple had also had the same transfer in South America before, and finally ended in failure.Because of a certain perspective, in the process of transfer, foreign companies consciously or unconsciously undertake the burden of advancing the entire social change.
Therefore, in the foreseeable future, India can still only play the role of "spare tires", and this "spare tire" will continue to leak air and constantly need "tires".
(Author Ding Gang is a senior editor of the People’s Daily and a senior researcher at the Chongyang Financial Research Institute of Renmin University of India. This article is transferred from the WeChat public account of "Ding Gang Watch the World" on October 16thVaranasi Wealth Management. Welcome to follow the National People’s Congress Chongyang Sina Weibo:@（（WeChat public account: rdcy2013)Udabur Wealth Management
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