Apple Is Now Building Residences For India Factory Workers: Report

Through a public-private partnership (PPP), these residences represent the largest private-sector initiative of its kind.

As part of the scheme, the central government is expected to contribute 10-15 per cent of the funding. Representative image.

Similar to its China and Vietnam models of industrial housing, iPhone maker Apple is now prioritising residential accommodations for factory workers, says a report by the Economic Times (ET). According to government officials cited in the ET report, Apple's contract manufacturers and suppliers, such as Foxconn, Tata and Salcomp, are in the process of developing housing facilities for their workforce.

Through a public-private partnership (PPP), these residences represent the largest private-sector initiative of its kind. The endeavour seeks to erect more than 78,000 units, with Tamil Nadu slated to receive the lion's share of 58,000 units. The State Industries Promotion Corporation of Tamil Nadu (SIPCOT) will oversee the construction of most housing units, while the Tata Group and SPR India are also participating in the home-building efforts, the report adeed.

As part of the scheme, the central government is expected to contribute 10-15 per cent of the funding, while the rest will be sourced from state governments and entrepreneurs. Officials anticipate that construction and handover to the private sector will be completed within the current financial year, ending on March 31, 2025.

“The massive employee housing initiative aims to enhance efficiency and provide security, particularly for migrant women employees, the majority of whom fall in the 19-24 age group,” an official was quoted as saying.

Meanwhile, since the introduction of the government's production-linked incentive (PLI) scheme for smartphones in August 2021, the Apple ecosystem has directly provided employment to more than 150,000 individuals. This achievement establishes the iPhone maker as the leading creator of blue-collar jobs in India, said a previous report by ET.

The majority of these employees are young adults aged between 19 and 24, many of whom are entering the job market for the first time, the report added.

It is to be noted that Apple commenced iPhone manufacturing operations in India back in 2017. Since then, it has collaborated with suppliers and contract manufacturers to assemble the latest iPhone models and progressively produce more components locally. The three main contract manufacturers - Foxconn, Wistron, and Pegatron - have collectively generated over 77,000 direct jobs in the country.