In A Major Shift, India Now Exporting Apple Components To China And Vietnam

For the first time, India has started exporting electronic components for Apple products to China and Vietnam. This marks a notable shift in India's role within the global supply chain, transitioning from a net importer to an exporter of these components.

Thanks to Government of India's initiatives like Make in India and Product Linked Incentive (PLI), Apple suppliers like Motherson Group, Jabil, Aequs, and Tata Electronics are producing key components in India, contributing to the development of a local electronics manufacturing ecosystem. This initiative is part of Apple's broader strategy to diversify its supply chain and deepen domestic value addition in India.

This move is expected to boost India's electronics manufacturing sector and help the country achieve its component exports target of $35-40 billion by 2030. It's a fascinating example of how global supply chains are evolving and how strategic investments can reshape economic landscapes.

China and Vietnam, which have been major hubs for Apple's manufacturing, will now receive components from India for final assembly. This could lead to a reconfiguration of their supply chains and potentially reduce their reliance on other component suppliers.

Countries like Taiwan, South Korea, and Japan, which are also significant players in the electronics manufacturing sector, might experience competitive pressure as India strengthens its position in the supply chain.

Moreover, for Apple, which is a US-based company, this shift aligns with its strategy to diversify its supply chain and reduce dependency on China. This move could also influence other US tech companies to explore similar strategies.

Domestically, this shift is expected to boost India's electronics manufacturing sector, create jobs, and attract further investments. It aligns with the Indian government's "Make in India" initiative and its goal to become a major electronics exporter.