Not only Apple, the legendary electric vehicle company Tesla has also turned to India.New Delhi:
According to the report of BQ Prime, the world's most valuable company Apple (Apple) named India not once or twice but 20 times in its earnings calls. Now the company has also opened two Apple stores in the country. When Tim Cook, the CEO of the iPhone maker company, opened the door of the Apple Retail Store himself, it was a gesture. India has opened its doors and companies from all over the world are desperate to enter India by taking exit from China's door.
Many global companies have moved out of China and entered India.
Not only Apple, Tesla, which has accelerated the revolution in the world of electric vehicles, has also turned to India. Tesla executives are now looking for opportunities in India. Now it is clear that the eyes of the world's big companies have come to India. The reason for this is quite clear that there is a market and production base here.
Growth in Indian market, China's condition is bad
According to the United Nations, India has now surpassed China in terms of population. Recently released data shows that the population has crossed 142 crore. China's population is about 30 lakh less than India. Now obviously, these are not just numbers but a big market of customers for the world that they want to capture. While the country's market is growing, big players from China are seen pulling back. There are not one but many big reasons for this. Let's understand them one by one.
Zero Covid policy has a profound impact on PMI
So far, the wave of Kovid in China, called the World's Factory, was so dangerous that the manufacturing industry broke its back. Factories were locked and the zero Covid policy made it difficult to operate. The Purchasing Managers' Index (PMI), which maps the state of China's manufacturing sector, fell to a four-month low of 4.49 in April. PMI is a barometer that shows the state of economic trends in manufacturing and services. Earlier in October to December 2, this figure could not cross 2022, that is, the manufacturing economy is shrinking. It is also affecting employment.
According to data from the National Bureau of Statistics, unemployment in the age group of 16 to 24 reached 20.4% in April and this number may increase even more by July.
For these reasons, companies are closing their business from China
Not only the economy, the lack of democracy in China is also becoming a headache for international companies. How much freedom of expression is there in China can be gauged only from the White Paper Revolution. Because of all this, companies now felt that another big option would be needed so that dependence on China could be reduced. Given cheap labour, land and democracy, there is no better option than India.
Apple is rapidly expanding its foot in the Indian market.
So now many renowned companies have started shifting their base. Samsung has moved its display manufacturing unit from China to the country in 2021. Apple has also reduced dependence on China and now 7% of iPhones are made in India. Foxconn, Apple's largest supplier, is also investing $50 million in Telangana and has already acquired 300 acres of land in Bengaluru. This means that China is weakening in the beginning of the China +1 policy in the world economy and India is moving fast towards becoming the first choice of global companies, not just +1.
(This report has been prepared by BQ PRIME associate Bhawna Sati.)