India has achieved a major milestone in its manufacturing sector as a result of the Make in India initiative. For the first time, the country has begun exporting electronic components for Apple products to China and Vietnam, while earlier it was a net importer.
The development is a major accomplishment that showcases the country’s growing capabilities in high-tech manufacturing.
From Importer to Exporter
Since more than two decades, India has been a net importer of electronic components and sub-assemblies from China and Vietnam. However, with an aim to promoting ‘Make in India’, the government is enabling more Indian companies to produce and export key mechanical components for a range of Apple products, including MacBooks, AirPods, Apple Watches, Apple Pencils, and iPhones.
Some of the prominent manufacturers that are at the forefront of this transformation include Motherson Group, Jabil, Aequs, and Tata Electronics. These companies are now producing crucial components like enclosures and other mechanical parts, which are then shipped to Apple’s assembly locations in China and Vietnam, where they are integrated into the final products.
The development is special since it demonstrates India’s capacity to produce complex components that require sophisticated engineering and high-tech machinery. This is considering the fact that mechanics, which hold together the motherboard, central processing unit, and other sub-assemblies in electronic products, demand precision and expertise.
Implications
This win in component manufacturing and exports is expected to have far-reaching implications for India’s electronics industry. Experts have predicted that the country could achieve its ambitious target of $35-40 billion in component exports by 2030-31. This timeline also aligns with the government’s vision of establishing India as a global hub for electronics manufacturing.
In order to further bolster this sector, the government of India is planning to launch a production-linked incentive (PLI) scheme worth over $3 billion specifically for component manufacturing. This initiative is expected to accelerate the development of a local component ecosystem and attract more investments in the sector.
The expansion of India’s role in Apple’s supply chain goes beyond just iPhones. While Apple currently manufactures only iPhones in India, with plans to start AirPods production soon, the country is now contributing components for a wider range of Apple products. This diversification shows the growing trust of companies in India’s manufacturing capabilities and the success of the ‘Make in India’ programme.
In addition, this development is also seen as a stepping stone for the entire electronics industry in India. By establishing a component ecosystem, India is positioning itself as a key player in the global electronics manufacturing landscape.
This is expected to attract more international companies to set up their manufacturing bases in India, further boosting the country’s export potential and creating job opportunities.
