India is downplaying worries raised by US President Donald Trump on Apple’s increasing manufacturing presence in the country. Government sources told CNBC-TV18 that the tech giant “assured the Indian government” it would continue as a substantial base for manufacturing its products.
“There is no change in Apple’s investment plans in India,” the sources added, indicating business as usual despite Trump’s recent comments criticizing the company’s India strategy.
During a gathering in Doha, Trump targeted Apple CEO Tim Cook, declaring,“I had a little problem with Tim Cook yesterday. I said to him, my friend, I am treating you very good… but now I hear you are building all over India. I don’t want you building in India.”
Despite Trump recognizing India's offer included “literally no tariffs,” he maintained his stance: “We are not interested in you constructing in India… We want you to construct here [in the US.” As a result of the rhetoric, there appears to be little impact on the Indian electronics sector. Rajoo Goel, Secretary General of the Electronic Industries Association of India (ELCINA), stated the country has to continue to chart its course deeper down the electronics value chain.
“We need to go deeper into the value chain and do more of the components locally,” Goel told CNBC-TV18, adding that India’s new electronic component manufacturing scheme would help achieve this.
Reacting to Trump’s comments, Goel said, “It may slow things down a bit, but I really don’t think it is going to impact India that much. We are still doing a very small share of the global market for Apple.”
Calling the remarks “just a statement,” Goel highlighted that India is on “a very strong footing” in electronics manufacturing. “Let us not get disheartened by this… I’m sure Donald Trump might change his stance,” he added.