From negligible exports to billions, India’s Apple-linked component shipments to China signal a dramatic trade shift, reshaping global supply chains.
India’s electronics exports to China have risen sharply in FY26, with Apple’s suppliers driving shipments worth $2.5 billion under the Electronics Component Manufacturing Scheme (ECMS).
According to a report by The Economic Times, officials and industry executives said this marks a reversal of the long-standing trend of Chinese vendors supplying components to India.
By January, India had already exported $2.8 billion of electronics to China, putting it on course to reach $3.5 billion by the end of the fiscal year 2026. This compares with $920 million in FY25, when exports were minimal.
Overall exports to China are expected to exceed $18 billion in FY26, up from $14.25 billion last year, with Apple accounting for most of the increase.
The surge reflects the combined impact of the smartphone production-linked incentive (PLI) scheme and ECMS. Apple’s decision to build a local supply chain has enabled Indian vendors to compete on quality and expand into exports.
Since 2021, Apple has produced $70 billion worth of iPhones in India, with $51 billion exported, largely to the United States. iPhones have become India’s largest single export commodity.
Suppliers including Foxconn, Tata Electronics, Pegatron, Motherson, Salcomp, TRIL Bangalore and Yuzhan Technology have contributed to shipments of printed circuit board assemblies (PCBA), housing, flex PCBAs and conductive graphite buttons.
These exports, classified under three harmonised system codes, have accelerated since April 2025.
With the smartphone PLI scheme ending in March 2026, industry representatives are reportedly pressing for a PLI 2.0 to sustain growth. The government is now focusing on boosting domestic value addition and component exports through ECMS.
Executives estimate that with both schemes, Indian firms could account for 30–35% of global mobile phone production, strengthening India’s role in global supply chains.
China, which imported more than $600 billion worth of electronics in 2025, is emerging as a significant market for Indian component manufacturers, signalling a structural shift in bilateral trade.
