Finally, Apple has come to an agreement with the government of the Indian state, Karnataka, to set up a manufacturing plant in the city of Bangalore, also known as Bengaluru. Apple, according to the news, will begin manufacturing at its facility in India by April.
The Minister for Information Technology Priyank Kharge said, “the creation of the facility will encourage a state of the art ecosystem and development in the supply chain in Karnataka, which is essential for India to compete worldwide.”
“Apple’s decision on initial manufacturing in Bengaluru has further enhanced the reputation of Bengaluru as the most preferred destination for foreign investment and further validation of the state government policies aimed at fostering production, innovation, and investments in Karnataka,” he added.
Kharge had earlier said that Apple was going to come to his state because of the investment climate, dynamic city, and skilled manpower. Are these the reasons for Apple’s decision? Of all the cities in India like Noida, Chennai or even Hyderabad, why did the Cupertino Company specifically choose Bengaluru?
One cannot give a definite answer to such a question. We can only attempt to suggest reasons why Apple chose Bengaluru for setting up its manufacturing plant.
To start with, Bengaluru is known for its ability to produce and support great startups. So it’s a very vibrant market. It was confirmed in a list compiled by Compass, a leading solution for automated management reports and benchmarks for small and medium-sized businesses.
In the list, Bengaluru is ranked the first city from India, and the second city from Asia, to make it to the Global Startup Ecosystem Ranking. According to the report, Bengaluru is ranked behind Berlin when it comes to creation and sustenance of growth of startups. It also ranks number 7 in the world’s largest investment destination. However, no other Indian city has ever made a list.
Also, a report states that the Bengaluru shall consist of some of the youngest entrepreneurs you’ll find in the world. In the city of Bengaluru, the average age of an engineer is far less those in Silicon Valley.
According to Nasscom’s 2016 Startup Report, Bengaluru, Delhi-NCR, and Mumbai are responsible for about 70 percent of startups in India. The country is also home to the third largest startup ecosystem in the world, and this is led by Bengaluru, with Delhi-NCR close on its heels and Mumbai a distant third.
From the report, Bengaluru is the largest investment destination as it accounts for 40% of overall funding in the startup space. This makes Bengaluru a place for starting something new.
As one entrepreneur explains, “I find this space more exciting. I locate the energy, and the sheer number of people starting up here are far more” when comparing Bengaluru’s startup scene to Silicon Valley’s.
The report by Nasscom further states that in the Indian startup ecosystem, the Karnataka government is ranked top.
Even the permanent secretary of e-governance of the Karnataka government once said that Silicon Valley would be Bangalored. Such statements reveal that there is a tremendous work being done by the government in other to encourage startups. There are government startup policies, grants, and other support infrastructure that has been in place and is handled by a dedicated startup cell.
With all these reports, you would want to agree that Bengaluru is the place to go. Apple already has a massive, 40,000 square foot office facility investment in Bengaluru that be dedicated to the development of apps and accelerate growth in India’s iOS developer community. And now the manufacturing plant is coming up.
The CEO of Apple, Tim Cook, had this to say about India during his company’s earnings call, “Despite the demonetization move in India that created lots of economic pressure there last quarter, despite that, we had record revenue results, and so we were jubilant about that. I think in the longer term, it’s a great move, and I feel magnificent about how we’re doing there. We are in discussions with some things, including retail stores, and fully intend to invest significantly in the country and believe it’s a great place to be.”
Other IT giants like Microsoft, Amazon, and IBM are also investing in Bengaluru. With all these activities, there’s a little wonder why Bengaluru is being referred to as the Silicon Valley of India.
Tim Cook is a smart business man and the decision to select Bengaluru for Apple’s manufacturing plant in India a testimony to it.
The Editor-in- Chief & Digital Strategist at Applesutra. When he isn’t busy devouring Apple blogs & podcasts, Varun spends his time following tennis (Vamos Rafa!), watching movies (superhero or super scary) or reading books (Audible/Kindle/old school).