Apple - India vs China vs USA - Cost comparison
Image courtesy - JP Morgan
Costs will go up only by 2% if Apple shifts its production base to India when compared to China. I frankly didn’t expect it to be that low.
US-China Trade War is becoming a catalyst for India’s manufacturing growth
Image: Nomura
According to Nomura, India is likely to keep its tariff advantage because it moved early on in the trade talks. India and the U.S. have already agreed on a basic framework for a trade deal, which sets the path for future talks. Lets see how many conversions we will see from the above list in the image
As per them, there are a few risks/ key factors to consider, though:
- India must pair its tariff advantage with strong ease-of-doing-business reforms, as companies still consider alternatives like Vietnam.
- India relies on Chinese imports for key components, and delays in importing machinery—such as for iPhone production—could slow supply chain shifts.
- Chinese exporters may use Indian firms to reroute goods to the U.S. under joint branding or commission-based models, raising concerns over indirect trade routes
It’s been a whie since my last sectoral update. I’ll try to be active from now. There are lot of interesting themes out there in market right now.