Apple's Indian Suppliers Achieve Record $2.5 Billion Component Exports to China
In a significant milestone for India's Electronics Component Manufacturing Scheme (ECMS), vendors supplying Apple have exported a record-breaking $2.5 billion worth of components to China. This development represents a dramatic reversal of the previous trade pattern, where Chinese firms traditionally supplied parts to India for mobile phones and other electronic products.
Exponential Growth in Electronics Exports
Industry estimates project that India could reach $3.5 billion in electronics exports to China during FY26, with $2.8 billion already achieved by January. This marks a substantial increase from approximately $920 million in FY25, when exports were negligible in earlier years. The surge is largely attributed to Apple-related shipments, according to industry sources familiar with the data.
Several prominent Apple suppliers operating in India have contributed to these shipments, including:
- Foxconn
- Tata Electronics
- Tata-owned Pegatron Technology India
- Motherson
- Salcomp
- TRIL Bangalore
- Yuzhan Technology
Broader Impact on India-China Trade
As data from other sectors becomes available, India's overall exports to China are expected to exceed $18 billion, up from $14.25 billion in FY25. Industry experts note that this growth is primarily driven by Apple-related shipments, representing an unexpected boost from both the smartphone Production-Linked Incentive (PLI) scheme and the Electronics Component Manufacturing Scheme.
"This outcome was not anticipated when Apple first began shifting iPhone production from China to India in 2021," said an industry executive familiar with the developments. The ecosystem has now reached a level of competitiveness that enables India to export parts and sub-assemblies back to China.
iPhone Manufacturing Success and Component Diversity
Under the smartphone PLI scheme over a five-year period, Apple manufactured iPhones worth $70 billion in India, with exports accounting for $51 billion (approximately 73% of the total), largely destined for the United States. This achievement has made iPhones India's top export item in the last fiscal year.
The exported components to China span a diverse range, including:
- Printed circuit board assemblies
- Mechanical parts and casings
- Flexible PCBAs
- Conductive graphite buttons for volume and power functions
These shipments fall under three harmonized system of nomenclature codes and have gained significant momentum since April 2025.
Future Prospects and Government Strategy
While the smartphone PLI scheme has delivered strong results, largely driven by Apple's local iPhone production, the Electronics Component Manufacturing Scheme is expected to achieve similar success in the components segment. Following its smartphone manufacturing achievements, the government is now shifting focus toward boosting domestic value addition, expanding component production, and increasing exports under ECMS.
With the original smartphone PLI program concluding in March, industry players have advocated for a second phase (PLI 2.0) to sustain growth momentum. Combined with the ongoing components scheme, Indian firms could potentially capture 30-35% of global mobile phone production and play an expanded role in international electronics supply chains.
China, which currently accounts for a significant portion of India's electronics imports, may emerge as a key export market for Indian component manufacturers. "India can eventually become a large exporter to China, whose cumulative imports of electronics exceeded $600 billion during CY25," noted an industry executive tracking China's trade data.
