20 crore Made In India iPhones to be manufactured at Foxconn Karnataka plant each year, April 2024 on

Apple's largest supplier, Foxconn, is expected to start producing iPhones in Bengaluru's Devanahalli plant by April 2024, Karnataka State Minister for Large and Medium Industries MB Patil said on Thursday, June 1.

iPhone in India: Foxconn to manufacture smartphones in Karnataka by April 2024 https://t.co/GdL15kDgCL

— Winson Tang (@winsontang) June 2, 2023

The required 300 acres of land in the Information Technology Investment Region (ITIR) will be handed over to the company by July 1 this year, along with water, quality power supply, road connectivity, and other infrastructure facilities, added the minister.

Why a Foxconn plant in India is a big deal

• The newly elected Congress government in Karnataka has announced that this project is worth Rs 13,600 crore. 
• Foxconn, the world's largest contract electronics manufacturer, has already paid Rs 90 crore (30% of the land cost) to the Karnataka Industrial Areas Development Board for the project.
• The company aims to complete the project in three phases and manufacture 20 million (20 crore) units annually after completion of all the phases.
• The plant is expected to create around 50,000 jobs. 
• Foxconn has been asked to provide details about the required skillsets for workers to organise training programs to enhance the employability of eligible candidates.
• The announcement came after the Taiwanese giant's representatives met with the minister.

Senior Management representatives of #Foxconn visited me to discuss the establishment of an #iPhone assembly plant at Devanahalli. We addressed project-related challenges, emphasizing the development of vital industrial infrastructure and maximizing the creation of employment… pic.twitter.com/h9vu3JPBSk

— M B Patil (@MBPatil) June 1, 2023

• India's smartphone exports have crossed $11 billion, with Made-in-India iPhones accounting for half that amount ($5.5 billion or Rs 45,000 crore), positioning the country as a global leader in the mobile segment.
• The recent opening of Apple's retail stores in Mumbai and New Delhi, with a total sale of around Rs 48 crore, is further strengthening Apple's presence in India.

After a few hiccups...

• Companies including Foxconn have been looking to shift their manufacturing out of China after the lockdown-induced supply chain disruptions and a massive labour protest at Foxconn’s largest factory in Zhengzhou last year.
• The Karnataka deal finally got a go-ahead after a series of back-and-forths with the last government.
• Successful lobbying for longer work shifts (12 hours) and relaxed night working hours for women was done citing 'efficient manufacturing here at scale'.

Apple and Foxconn win labour reforms to advance Indian production plans https://t.co/JLw6sW3lci

— Demetri (@Dimi) March 10, 2023

• The company was already in talks with the outgoing BJP government for setting up the plant near Bengaluru. Now that Congress has come to power in the state, a credit war seems to have erupted.