For the first time, India has begun exporting essential components for Apple products, including AirPods and MacBooks, to Vietnam and China. This development marks a significant milestone in Apple's global supply chain diversification strategy. Leading Apple suppliers in India, such as Tata Electronics, Motherson Group, Aequs, and Jabil, are now manufacturing and exporting critical electronic components. These components are shipped to Vietnam and China, where they are further assembled into finished Apple products.

A Shift in India’s Supply Chain Role

According to industry experts, this strategic move will provide a substantial boost to India’s electronics sector. Historically, India has been a net importer of electronic components for the past two decades. The recent shift towards exports marks a pivotal turnaround in the nation’s supply chain dynamics. Until now, key components and sub-assemblies were primarily imported from Vietnam and China.

India’s Growing Role in Apple’s Manufacturing Strategy

Currently, Apple manufactures only iPhones in India. However, the US-based tech giant is expected to expand its production portfolio in the country soon. In the future, 'Made in India' Apple products will also be exported to China and Vietnam, strengthening India’s position in the global supply chain.

India Targets $40 Billion in Exports by 2031

Analysts predict that India is on track to achieve an ambitious $40 billion export target by 2031. Additionally, there is growing anticipation that the central government may introduce a $3 billion Production-Linked Incentive (PLI) scheme tailored specifically for component manufacturers. This initiative aims to further encourage local production and boost India's electronics industry.

Apple’s Strategy to Reduce Dependence on China

Apple’s decision to increase local value addition and expand its supplier base in India aligns with its broader goal of reducing reliance on China. The company has been gradually restructuring its supply chain, and India is emerging as a crucial player in this transformation.