Why is India not a guaranteed success despite the American definitions of China

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“I do not want you to build in India,” Trump said, after news about Apple’s decision to increase production in India with the aim of making about 25 % of the global iPhone devices in the country in the next few years, and reducing dependence on China, where he turned China, where 90 % of his pioneering smartphone has been collected currently.

While India has definitely appeared as an important center, although Nascent, to the electronics center, the road until it becomes a clear alternative to China is not a guaranteed result, despite the American definitions of Chinese goods.

The geopolitical disorders seem to be one of the many obstacles that occur in India, as well as companies looking forward to the country.

For Apple, manufacturing to the United States, instead of India, from China in the field of capabilities, is still even if it is unlikely to the company.

If Apple is transporting the final assembly to the United States, IPHONE costs may increase by 25 % due to the high costs of US employment, according to analysts from Bank of America. However, this assumes that sub -rewards, such as cameras, are still partially gathered outside the United States

To put it in the context, the primary model of the iPhone 16 Pro Max costs $ 1,199 for frank purchase, with the addition of $ 125.90 in local taxes in Louisiana, for example. The final assembly and testing in the United States will simply add $ 160 to the consumer bill.

At the same time, the functions are implemented at risk 1.4 million people It works by Apple suppliers abroad.

Can Trump believe and support that additional costs may be worth paying if several thousand jobs are created in the United States?

“If Apple moves the final assembly to the United States, it will need to be disabilities to tariff for the internationally manufactured sub -components/assemblies to make manufacturing episodes.”

Although technically, Mohan sees the transfer of the entire iPhone supply chain to the United States as a “much greater task” that is likely to take many years, even if possible.

The main challenge of India extends beyond the companies ’attraction.

“The supply and manufacturing chain, these things take a long time to establish it,” said Nick McContaway, head of the Equity Department in Asia in Japan in Asset Management. “We have seen that with Vietnam, who had to put huge investments in the infrastructure. The lights should remain on the roads, and the trucks should be there in a timely manner.”

“I think India is not only in the early stage of developing these types of manufacturing capabilities facing globally.”

The Fund’s director also highlighted that although the costs of employment may be low in India, this does not mean savings for companies that transfer their manufacturing base to India.

“Although the costs of employment may be low, the cost of employment of your unit is not because productivity is not good,” said McContaway.

Meanwhile, for the United States, this productivity gap can compensate for the advantages of the cheapest labor, which makes it difficult for India to compete effectively on a global scale for high -value manufacturing. Apple has also made great progress in automating several roles in the final assembly line, which reduces the number of people required by more than 50 % since the start of the operation.

Even if India wins a greater share of Apple’s iPhone assembly work, the country’s benefits are likely to be minimal, according to one analyst.

“Today, India is only $ 30 per iPhone, many of which are returned to Apple as support in the framework of the production scheme (production -related motivation),” said Ajay Srivastava, founder of the World Trade Research Initiative for Research.

Srivastava, a former trade negotiator in India, followed a protectionist approach and suggested that reducing definitions in New Delhi on the components of smartphones at the request of Apple may harm local efforts to build a local component ecosystem.

“If the Apple Group comes out, India will have to stop supporting shallow assembly lines and investment instead in deeper manufacturing – gear, shows, batteries, and beyond.”

In the end, Trump’s push to re -manufacture to the United States, which is free from India from foreign investment. The country may have work hard to attract investors.

– Michael Bloom of CNBC and Arjun Kharpal contributed to reporting.

Analysts say the India market is one of the best long -term plays. With the receipt of the narration “our sale” amid customs tariff disorder and concerns about the escalating financial deficit in the country, emerging markets have gained a traction as an attractive alternative to investors. Among the emerging markets, Malcolm Dorson, head of the active investment team at Global X ETFS, believes. India offers the best long period–Growth plays a termHe repeated feelings echoed by Mohit Mirburi, director of the stock fund at SGMC Capital, who said this topic is based on the local demand for India.

India hopes to obtain a complete exemption from the American “mutual” definitions. The duties in the country of South Asia come 26 %, and officials seek to conclude a deal with the United States Get rid of definitions completelyAccording to CNBC TV18. However, India is reluctant to allow commodities such as agriculture and dairy, which is likely to prove to be a barrier in negotiations, said the former Indian Ambassador at the World Trade Organization, Gayman Dasgobta. However, the large local economy in India and low dependence on imports can Protect it from the impact of definitionsAccording to the MOODY classification report, which was released on May 21.

Britain and the United States are working together to maintain a ceasefire in India Pakistan. “Confidence -building measures “and dialogues on the tableUK Foreign Minister David Lami said on Saturday. India said on May 6 The armed forces had strikes against Pakistan What you call Jamo and Kashmir, which is occupied by Pakistan, targeting “terrorist infrastructure”. The operation followed a similar attack last month in Paalgam, Jammu and Kashmir, where 26 people were killed.

– Ubon ping

Indian stocks decreased over the past week by more than 1.5 % so far. the Elegant 50 The index increased by 3.65 % this year.

Indian government bonds returned for 10 years later to 6.22 %, decreased by two basic points during the past week.

On CNBC TV this week, Lavina Kadros, Managing Director of Stock Research at Jeffrey India, said the defense sector in India “has come a long run” in the past ten years, as the government has pushed these imports to 30 % of 70 %. Investor confidence in Indian defense companies It was also strengthened because local air defense systems, for example, have been successfully subjected to foreign drones. But the implementation of requests is still a major concern for investors.

Meanwhile, Sanjif Sanyal, a member of the Economic Consultative Council of the Indian Prime Minister, indicated that the global supply chain will likely appear different by 2030 – and India intends to play a major role in it. Sanyal added that the country is already a “very important part of the supply chain for global services”, a fact that has been neglected by many, and will now focus on efforts in manufacturing, especially in electronics and minerals. Sanyal said that even if the United States wants to repeat itself, the country will have to rely on others for materials, and this represents an opportunity for India.

– Ubon ping