Tata Group's potential assembly of iPhones  in India marks a significant triumph for the Make-in-India campaign. India's biggest conglomerate is on the verge of finalizing a deal to purchase the factory of an Apple supplier by August, marking a significant milestone as the country's first indigenous company to venture into iPhone assembly.

Tata is set to purchase the Karnataka factory owned by Wistron Corp , a company based in Taiwan. Once the deal is officially completed, Tata will take charge of the factory where the iPhone 14 is currently being manufactured. The Karnataka facility is worth over $600 million and has a workforce of over 10,000 employees.

In order to receive financial incentives, Wistron has pledged to deliver iPhones worth a minimum of $1.8 million from the factory by March 2024. In addition, it is actively initiating efforts to expand its workforce at the plant threefold within the upcoming year. Once Tata assumes control, it will be required to uphold the commitments that the legacy brand has previously agreed to.

The agreement is set to come to a successful conclusion.

Whispers had been circulating about the agreement for a while. Earlier, it was mentioned that the two companies had explored possible collaborations, however, following negotiations,Tata Group  assumed full responsibility. During the transition phase, it is expected that the Indian firm will manage the production activities, while Wistron will offer assistance.

Remarkably, Taiwanese manufacturing powerhouses including Wistron and Foxconn play a crucial role in manufacturing and assembling the coveted iPhones, making Apple one of the most valuable companies globally.

Tata has long been synonymous with India's homegrown expertise. Tata has achieved triumph in a wide range of industries, from salt and tea to passenger airlines and tech services.

The iPhone assembly company has the potential to greatly enhance Prime Minister Narendra Modi's  endeavors to rival China's position as the global manufacturing hub.

For quite some time, Apple has been considering India as a potential substitute for China. The tech sector has been further impacted by Xi Jinping's  strong measures and the post-pandemic economic slowdown in mainland China, expediting the ongoing trajectory.

Just one day following the separation between Vedanta and Foxconn, the Indian government received unfortunate news regarding the imminent conclusion of the deal's closure. The two companies had agreed to establish a large-scale semiconductor manufacturing facility in the country, but they were unable to resolve the specific terms of the agreement, leading to their decision to terminate the partnership.

Tata Group has successfully acquired the Indian factory of Wistron Corp, a Taiwanese company, after extensive negotiations. The choice to divest might be prompted by a challenging incident in 2020, involving violence at the Wistron factory in India due to labor issues.

Apple is committed to diversifying its supply chain and this commitment applies to all of its suppliers. Recently, Foxconn revealed its intention to invest $500 million in Telengana, India, as part of this effort. In addition to Southern Asia, Apple and its partners are making investments in manufacturing facilities in countries such as Thailand and Vietnam.

The objective is to establish a robust supply chain network that can better withstand unexpected disruptions, including theCOVID-19 pandemic  and ongoing political instability.

JP Morgan forecasts a substantial increase in India's contribution to iPhone manufacturing , estimating it could reach 25% by 2025. Currently, approximately 63,000 employees are involved in the production of iPhones in India, accounting for about 7% of the total iPhones manufactured.

Apple, along with the Indian government and local states, has dedicated significant time and ongoing discussions in order to implement revised employment regulations. These new rules aim to facilitate improvements such as the provision of on-site housing for female workers and the opportunity for longer workdays. This cannot be achieved based on existing regulations, as they aim to prevent the exploitation of workers.

Several regulations, which were modified in a nationwide Factories Act, seem to be on the verge of being revoked by local states such as Tamil Nadu due to influence from unions and political factions.

Due to the opposition against these regulations, there is a chance that the Act might undergo modifications to exclusively encompass particular industries, such as the assembly of iPhones. Apple's suppliers in China employ approximately one million individuals, creating strong incentives to find a harmonious equilibrium between international profits and the welfare of local communities.

Apple is investing in new office space in Bengaluru, India's Silicon Valley, as part of its efforts to support its growth in the region. Additionally, the company has made changes to its global sales structure to prioritize and speed up decision-making at the local level in India. Apple's top management in India is now easily accessible through a mere couple of phone calls, enhancing communication. Additionally, the company has initiated investments in various environmentally conscious and social ventures in the country. These endeavors aim to contribute towards Apple's ultimate goal of achieving a supply chain that has a net-zero carbon impact.

It's not surprising that major manufacturing companies like Tata Group are pursuing opportunities to collaborate with Apple given the significant potential.

The diverse range of products offered by the Tata Group in India includes items like salt and technology services. Recently, it has also endeavored to make advancements in the fields of electronics manufacturing and online commerce. Its factory in Tamil Nadu is already producing chassis for iPhones, which marks a significant milestone for the "Make in India" initiative.