India-Pakistan conflict clouds Apple’s focus on India as supply chain replacement for China

Tensions between India and Pakistan are longstanding, but the growing interest of wealthy nations in South Asia heightens the stakes. This makes the prospect of conflict between these nuclear-armed neighbors more concerning for countries, executives, and investors who view India, the world’s fifth-largest economy, as a potential safe haven amid the global trade war.
Reuters:
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On Wednesday, hours after Prime Minister Narendra Modi unveiled a landmark trade deal with the UK and trumpeted his country’s transformation into a vibrant hub of global commerce, India said it attacked nine “terrorist infrastructure” sites in Pakistan and Pakistani Kashmir. It’s a jarring juxtaposition of economic and political events.
A muscular response from New Delhi was expected after an attack by Islamist militants on Hindu tourists killed 26 people in Indian Kashmir last month… One concern, however, is that New Delhi may not achieve its desired deterrence. Unsurprisingly, Pakistan’s army warns it will respond. Over the longer term, India’s suspension of a long-standing water-sharing treaty that ensured supply to 80% of Pakistani farms threatens to turbocharge poverty and fuel further violence.
It’s a sobering moment for those counting on India to capture a bigger share of American supply chains from China – Apple aims to make most of its U.S.-bound iPhones in India by the end of 2026.

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MacDailyNews Take: Hopefully, this latest conflict between India and Pakistan can be tamped down.

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