look news india
Made in India iPhone,New Delhi: Amid the possibilities of former US President Donald Trump’s return to power, the discussion is in full swing that if he becomes president again, he can impose heavy tariffs on imported goods from China. But do you know that even if this happens, even the iPhone made in India (Made in India) can remain cheaper than the iPhone made in China, even if they are imposed an import duty of 25%. There are some special reasons behind this.
Production cost advantage in India:
Analysts believe that the cost of making iPhones in India is lower than that of China. A major reason for this is the cheap labor available in India. Apart from this, initiatives like ‘Make in India’ of the Government of India are also encouraging companies for local production, under which they get many concessions and subsidies. These causatives help keep the production costs low.
Large companies like Apple are making their supply chains diverse and are reducing their dependence on China. Under this, India is emerging as an important manufacturing hub. If there is a huge tariff on the iPhone imported from China, it will be more beneficial for companies to increase supply from countries like India.
Trade tension between America and China:
Business tension has been going on between the US and China for some time. If Trump returns to power and increases import duty on China, the iPhones made in China will become quite expensive in the US. In such a situation, even if there is some tariff on the iPhone made in India, they can still be less expensive than the Chinese iPhone, as their original production costs will be low and they might not be as heavy tariffs as directly on products coming from China.
Possible effect of tariff:
According to industry experts, if Trump imposes up to 60% on Chinese goods and up to 10% on all other imports, it will change the global trade equations to a great extent. However, some analysts also believe that companies like Apple can bear some part of the increased cost themselves and some parts will be put on the customers, so that their competition in the market remains.
But if the situation becomes such that the Chinese iPhone has a lot of tariff (eg 60%) and the iPhone made in India is comparatively less (eg 25% or less, if there is a special trade agreement), then Indian iPhones will surely be available at a more competitive price in the US market.
It will be important to see how the political and business scenario develops in the future, but according to the current signals, India is strengthening its position as a major center of iPhone manufacturing, and it can also prove to be beneficial for American consumers, especially if business tension with China increases.