Apple’s India Vendors Achieve $2.5 Billion in Component Exports to China, Potential to Reach $3.5 Billion Under ECMS
In a significant milestone for India’s electronics sector, Apple’s vendors in the country have exported a remarkable $2.5 billion worth of components to China. This achievement highlights a notable shift in the supply chain dynamics, moving away from China’s previous role as the primary supplier of electronic parts to India. Industry experts predict that India’s electronics exports to China could reach $3.5 billion by the fiscal year 2026, marking a substantial increase from previous years.
Record Exports and Future Projections
The surge in exports is attributed to the government’s electronics component manufacturing scheme (ECMS) and the smartphone production-linked incentive scheme (PLI). These initiatives have fostered a robust domestic supply chain, enabling Indian manufacturers to export components back to China. By January, India had already achieved $2.8 billion in electronics exports, a significant rise from approximately $920 million in the previous fiscal year. Industry estimates suggest that overall exports to China could exceed $18 billion, up from $14.25 billion in FY25, largely driven by Apple-related shipments.
Key Contributors to the Export Surge
Several Indian suppliers have played a crucial role in this export growth, including Foxconn, Tata Electronics, Pegatron Technology India, Motherson, Salcomp, TRIL Bangalore, and Yuzhan Technology. These companies have been instrumental in shipping a variety of components, such as printed circuit board assemblies, mechanical parts, and flexible PCBAs. The momentum of these exports has been particularly strong since April 2025, reflecting the growing competitiveness of India’s electronics manufacturing sector.
Impact of Government Initiatives
The success of the smartphone PLI scheme, which has facilitated the production of iPhones worth $70 billion in India, has set a precedent for the electronics component manufacturing scheme. With exports accounting for nearly 73 percent of total iPhone production, this initiative has positioned iPhones as the top export item for the country in the last fiscal year. As the government aims to enhance domestic value addition and expand component production, industry players are advocating for a second phase of the PLI program to sustain this growth trajectory.
Future of India’s Electronics Industry
Looking ahead, Indian firms are poised to capture a larger share of global mobile phone production, potentially reaching 30 to 35 percent. This shift could also redefine India’s role in international electronics supply chains, with China emerging as a key export market. An industry executive noted that India has the potential to become a significant exporter to China, which imported over $600 billion in electronics during the calendar year 2025. As the landscape of electronics manufacturing evolves, the collaboration between Indian firms and global giants like Apple is likely to play a pivotal role in shaping the future of the industry.
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