IPMAT Indore 2023 - VA Q55 Explanation

Explanation:

(a)

The passage suggests that India is now a focus of Apple operations for a combination of reasons, and option 3, "It offers the benefit of a manufacturing base in addition to a market," aligns with the information presented in the passage.

No other country has the same ease of doing business:This is not explicitly mentioned in the passage. The focus on manufacturing in India is emphasized more than the ease of doing business. It has the world’s second-largest population:While the population size is mentioned, the passage primarily emphasizes India's role as a manufacturing base for Apple products.

American technology companies want to reduce their reliance on China:While this is a global trend due to geopolitical considerations, the passage doesn't explicitly state that this is the primary reason for Apple's focus on India. The emphasis is more on India's growing importance as both a market and a manufacturing base.

Manufacturing Base: The passage mentions that Apple began making a lower-end model of the iPhone in India in 2017. Furthermore, by 2025, a quarter of all iPhones the company makes could be produced in India. This indicates that India provides a significant manufacturing base for Apple, and the company is increasing its manufacturing capacity in the country.

Market Potential: While not explicitly stated in the options, the passage also implies that India's market potential is a factor in Apple's focus. The passage notes that India is rising fast as a manufacturing base for the iPhone and mentions Apple's significant market share in the Indian premium smartphone market. Option 3 captures the dual advantage of India being both a manufacturing base and a market of strategic importance to Apple. The other options do not comprehensively address both aspects mentioned in the passage.