Closer to its target of $35-40 billion in exports by 2030, India starts exporting components for Apple products to China and Vietnam, diversifying Apple’s supply chain and boosting local manufacturing.
India has begun exporting electronic components to China and Vietnam for the first time, contributing to the production of Apple products such as MacBooks, AirPods, iPhones, and Apple Watches.
This marks a significant shift in Apple’s supply chain strategy, diversifying its sourcing beyond China. Key suppliers, including Motherson Group, Jabil, Aequs, and Tata Electronics, are manufacturing components such as enclosures for Apple’s products in India, excluding iPads, and exporting them to final assembly locations in China and Vietnam.
According to a report by the Economic Times, Apple’s expansion into local component manufacturing is a part of its strategy to enhance domestic value addition and develop a robust local ecosystem in India. By deepening its procurement efforts beyond iPhones, Apple aims to build a component ecosystem that strengthens India’s position as a key player in global electronics manufacturing. This shift is especially notable, as India has been a net importer of components from China and Vietnam for the past two decades.
Experts view this development as a significant milestone, forecasting that India could meet its component export target of $35-40 billion by 2030. The government plans to support this growth with a $3 billion production-linked incentive scheme to boost component manufacturing.
Apple’s investment in India’s manufacturing capabilities is also expanding to advanced technologies. Suppliers are now contributing to the production of mechanics for various Apple products. Additionally, Tata Electronics, which started supplying mechanics for iPhones in India three years ago, is now manufacturing components for export to China.
This move follows Apple’s broader strategy to reduce its reliance on China and diversify its supply chain. In 2024, Apple set a record by exporting over Rs 1 trillion worth of iPhones from India, marking a new era in India’s electronics manufacturing landscape.
