Apple’s vendor network in India has reached a significant milestone, exporting a record $2.5 billion in electronic components to China. This development marks a shift in the traditional trade relationship, where China historically served as the primary supplier of parts for Indian electronics assembly. Under the government’s Electronics Component Manufacturing Scheme (ECMS), these exports are projected to reach $3.5 billion for the 2026 fiscal year.
Data indicates a rapid acceleration in output. In FY25, electronics exports to China stood at approximately $920 million. By January of the following year, that figure had already climbed to $2.8 billion. This growth is primarily attributed to Apple’s domestic supply chain, which includes key players such as Foxconn, Tata Electronics, Pegatron Technology India, Motherson, Salcomp, TRIL Bangalore, and Yuzhan Technology.
The surge in exports is largely a byproduct of the Production-Linked Incentives (PLI) and ECMS initiatives. Originally designed to move iPhone assembly to India, these programs have fostered a domestic ecosystem capable of producing high-quality sub-assemblies. The exported items include:
Printed circuit board assemblies (PCBAs)
Mechanical parts and casings
Flexible PCBAs
Conductive graphite buttons for volume and power functions
While the majority of India-made iPhones — approximately $51 billion worth — are exported to the United States, the ability to export components back to China was an unexpected outcome of the 2021 manufacturing shift. Industry analysts note that as of April 2025, the momentum for these shipments has increased significantly across specific harmonized system codes.
Total Indian exports to China are expected to surpass $18 billion this year, up from $14.25 billion in FY25, with Apple-related shipments serving as the primary driver. As the initial smartphone PLI concludes in March, industry stakeholders are advocating for a “PLI 2.0” to sustain this trajectory. The goal is for Indian firms to eventually capture 30% to 35% of global mobile phone production. Given that China’s total electronics imports exceeded $600 billion in 2025, Indian manufacturers view the Chinese market as a substantial opportunity for future growth in the component sector.
