Technology giant Apple’s exports via its OEM partners from India are likely to touch $1 billion in the current year amid the Centre’s push to expand the manufacturing base and make the country an export hub.

“Apple started manufacturing in 2017 and within the last two years, they have gone from zero to $0.5 billion in exports. Their exports through partners are expected to touch $1 billion in 2019,” an official source told The Hindu.

The U.S.- headquartered company currently manufactures two iPhone models in India — iPhone 6S and iPhone 7. Earlier, it was also producing iPhone SE. The company was also to begin manufacturing iPhone 8 and iPhone XR in the country before the end of 2019.

Exporting accessories

Apple, which undertakes manufacturing in India via contract manufacturers, has also started exporting accessories from the country, the official said. Apple did not respond to the story till the time of going to the press.

On Monday, after a meeting with over 50 CEOs from the electronics industry, Electronics and IT Minister Ravi Shankar Prasad told Apple to form a “robust” presence in India and that their investment till now in the country was just a “tip of the iceberg.”

‘Stable regime’

The official added that Apple had sought a “stable and predictable” regime before it looks at shifting or expanding its well-established manufacturing base from China to India.

“They have also clarified that they do not seek specific concession for manufacturing in India and exports, but have sought a sector-specific policy and incentives to boost smartphone exports and make India competitive with China and Vietnam.”

According to an industry expert, India has a 12-18% disability in cost of manufacturing vis-a-vis China and Vietnam – the two largest smartphone exporters in the world — due to infrastructure, logistics, taxes, cost of land etc.

In addition, India’s labour cost arbitrage doesn’t help Apple much as it constitutes only 1% of the total iPhone manufacturing cost.