Deepak Shenoy agrees with Donald Trump's take on making Apple iPhones in US. Here's why
Deepak Shenoy emphasises the importance of local manufacturing. He supports Trump's call for Apple to prioritise iPhone's US production over India, suggesting that India should encourage local manufacturing to boost the economy and create jobs.
Capitalmind CEO Deepak Shenoy has voiced his support for US President Donald Trump, backing his call for Apple CEO Tim Cook to halt the expansion of manufacturing in India for iPhone devices destined for American consumers. But why?
Shenoy questioned the backlash against Trump’s statement and emphasised that such nationalistic policies are not uncommon. Shenoy believes there is no need to be "antsy" about Trump telling not to build in India and to build in the US. He argued that India should adopt a similar approach by encouraging domestic manufacturing and reducing reliance on China.
"Why are we all antsy about Trump telling Tim Cook to not build in India but to build in the US? This is exactly what India needs to be telling its own manufacturers too - build here, not in China. Every country's leaders wants jobs for their own people," Shenoy said in a post on social media on platform X on Thursday evening.
Shenoy’s comments reflect a broader view that national industrial strategies, like Trump's “America First,” can serve as a model for India’s own “Make in India” initiative.
Apple iPhone: Make in India vs Make in US
As of now, Apple has no smartphone production in the US. Most of the iPhones that Apple manufactures are made in China, while facilities in India produce nearly 40 million units annually, which is around 15% of Apple's annual output.
India-made iPhones are assembled in Taiwanese contract manufacturer Foxconn's factory in Tamil Nadu. Tata Electronics, which runs Pegatron Corp's operations in India, is the other key manufacturer. Tata and Foxconn are building new plants and adding production capacity to increase iPhone production.
Apple assembled 60% more iPhones, worth an estimated $22 billion, in India in the year ended March 31.
Trump, who in his second term as President is pushing for local manufacturing, said Apple will be "upping their production in the United States."
"I had a little problem with Tim Cook yesterday," Trump said of his conversation with Apple's CEO, in Doha. "I said to him, Tim, you're my friend. I treated you very well. You're coming in with USD 500 billion (investment). But now I hear you're building all over India. I don't want you building in India if you want to take care of India."
Apple had earlier this year pledged to spend $500 billion in the US over the next four years.
Local manufacturing: Need of the hour?
Deepak Shenoy's comments are also significant amid the ongoing global trade war that puts a spotlight on the need for local manufacturing.
While tariffs imposed by Donald Trump are on a pause and countries are looking to strike deals with the US, the uncertainty on the trade front poses challenges for countries.
Higher tariffs will make imported goods more expensive, and likely push consumers towards locally made products. This could potentially encourage companies to invest in domestic production and create jobs.
(With inputs from agencies)
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