Why Make-In-India is not guaranteed success despite tariffs in the US in China

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“I don’t want you to create in India,” Trump said, Cook said after the news appeared in Apple’s decision to increase production in India for the purpose of making about 25% global iPhones in the country in the next few years, and reduce dependence on China where around Currently assembled 90% of its flagship smartphone.

While India has certainly become a significant, albeit charged, the center for assembling electronics, the path to it becomes a clear alternative to China, the result is not guaranteed, despite the tariffs for Chinese goods.

Geopolitical shocks are one of the many such obstacles to India, as well as the enterprises that look at the country.

For Apple, the transfer of production to the US, instead of India, from China still remains in the field of opportunities, even if it is unlikely for the company.

When Apple moves to the US final assembly, the iPhone costs can increase by 25% of the higher job costs in the US, according to Bank of America. However, it believes that the subcomppenters, like cameras, are still partly gathering around the US borders

To include this in the context, the base model for the iPhone 16 Pro Max is worth $ 1199 to buy directly, such as $ 125.90 in local taxes in Louisiana. The final assembly and testing in the US will simply add $ 160 to the consumer bill.

Meanwhile, jobs on the map are performed 1.4 million people employed by Apple suppliers abroad.

Can Trump and His supporters believe that additional costs can be worth paying if many thousands of jobs are created in the US?

“When Apple translates to the US final assembly, he will need tariff refusals of components/sophomores made worldwide to make production shifts,” Wamsi Mohan Bofa said in the client’s note.

Although technically possible, Mohan views by moving the entire iPhone supply chain to the US as “a much larger enterprise” that will probably take many years if possible, “and does not expect the US to go to the United States unless the tariff policy becomes constant.

The main problem for India goes beyond only the attraction of companies.

“The supply network and production network, these things take a long time to set,” said Nick McConwee, head of Asia Ex-Japan in Amundi Asset Management. “We saw that with Vietnam, who had to invest a huge investment in the infrastructure. Light needs to remain, roads should be there, trucks should get in time.”

“I think India is only at the earliest stage of developing these types of world production facilities,” McConwe added.

The head of the fund also emphasized that while work costs in India may be low, it does not mean saving for companies that move their production base to India.

“Although your workforce costs may be low, your single work value is not because performance is not good,” McConwe said.

Meanwhile, for the United States, this gap in performance can offset the benefits of cheaper work, which makes it difficult for India to compete effectively on a high -cost global scale. Apple has also made significant progress in the automation of multiple roles in its final assembly line, reducing the number of people needed by more than 50% since the start of the process.

And even if India wins a bigger business from the Apple iPhone, the benefits for the country are likely to be minimal, one of the analysts reports.

“Today, India earns only $ 30 per iPhone, most of which returns Apple as a subsidy as part of the scheme (related production),” said Aji Srivstova, founder of Global Tank Global Trade Research Initiation.

Srivastava, a former trading negotiator in India, has assumed a protectionist approach and suggested that the reduction of tariffs on New Delhi on the components of Apple’s smartphones could harm the internal effort to build a local ecosystem of the components.

“When Apple’s assembly comes out, India will be forced to stop the proposal of shallow lines and instead invest in deeper production – chips, displays, batteries and further.”

After all, it may not even push Trump to produce the US that is deprived of foreign investment. The country can be more difficult to work to attract investors.

– Michael Bloom and Arjun Harpal reported.

India’s analysts are one of the best long-term plays. Because the story “Sell us” picks pairs against the background of the US tariff and concern about the country’s fiscal deficit, developing markets have acquired a craving as an attractive alternative to investors. Among the new markets, it is believed, Malcolm Drson, head of an active investment group in Global X ETFs India offers the best long.The term of the game isThe moods that Mohit Mirpur responded, head of the stock fund at the SGMC Capital, who said the topic is enshrined in India’s domestic demand.

India hopes for complete release from American “mutual” tariffs. The duties in the South -Asian country come to 26%, and officials seek to conclude from the US an agreement To end the tariffs completelyAccording to CNBC TV18. However, India is reluctant to launch goods, such as agriculture and dairy products, which is likely to be a checkpoint in the negotiations, said former Indian Ambassador to the World Trade Organization Giant Dosgpto. In view of this, the great domestic economy of India and the low -dependence on imports can Protect it from the impact of tariffsAccording to the Moody’s Ratings report published on May 21.

Britain and the US work together to keep the ceasefire of India-Pakistan. “Measures to strengthen confidence “and dialogues are on the tableBritish Foreign Minister David Lami said on Saturday. India on May 6 said he said Armed forces spent blows against Pakistan And what he calls, occupied by Pakistan Jamm and Kashmir, focusing on the “terrorist infrastructure”. The operation goes to the militants last month in the funeral, Jammu and Kashmir, which killed 26 people.

. Yeo Boon Ping

Over the past week, Indian shares have decreased by more than 1.5%. A Nifty 50 This year the index increased by 3.65%.

The 10-year government bond in India has been observed just below 6.22%, falling by 2 basic points for the past week.

This week, CNBC Lavina Quadros, Head of Jefferies India Studies, said that in the last ten years the India’s Defense Sector “has gone a long way” because the government has pushed such imports to 30%. Investor confidence to Indian defense firms For example, it has been raised because foreign air defense systems have successfully intercepted foreign drones. But the execution of orders remains a key problem for investors.

Meanwhile, Sanjjev Sanyal, a member of the Prime Minister Prime Minister’s Advisory Council, noted that by 2030 the global supply network will look different -and India intends to play a key role. The country is already “a very important part of the global service supply chain”, a fact that many are neglected, and will now focus on production efforts, especially in electronics and metals, Sanyal added. Even if the United States wants to rebuild itself, the country will still have to rely on other materials, and it gives an opportunity for India, Sanyal said.

. Yeo Boon Ping