India has started exporting electronic components to China and Vietnam to produce Apple devices for the first time, signalling a significant shift in the global supply chain. Companies like Motherson Group, Jabil, Aequs, and Tata Electronics are manufacturing essential mechanical parts, such as enclosures for MacBooks, AirPods, Watches, Pencils, and iPhones, and supplying them to Apple’s assembly units in China and Vietnam, according to sources cited by The Economic Times (ET).

"In its bid to deepen domestic value addition and build a local ecosystem (in India), Apple is expanding domestic procurement beyond iPhones and its key components," according to a source. "That is why the company has initiated this massive initiative to make mechanics, particularly enclosures, for its products."

India's decision to export key electronic components marks a significant shift, as the country has relied on imports from China and Vietnam for over 20 years. By entering the global electronics manufacturing market, India is strengthening its position, with industry experts estimating that component exports could reach $35-40 billion by 2030-31.

To further support local production, the Indian government is expected to introduce a $3 billion production-linked incentive (PLI) scheme.

Electronic products rely on enclosures and other essential structural components that secure motherboards, CPUs, and sub-assemblies. Manufacturing these parts requires advanced precision engineering and high-tech capabilities, making India's entry into this sector a significant achievement. "India is rising as a manufacturing alternative for Apple, alongside China and Vietnam. It's not just about finished iPhones and other Apple products—India is now producing and exporting components to China and Vietnam for finishing these products as a source," as per Neil Shah, who is the Vice President at Counterpoint Research.

Apple has been working to establish a strong manufacturing base in India by partnering with top domestic manufacturers and encouraging global suppliers to set up operations there.

Recent developments in this effort include Jabil in Pune, which has started producing mechanical components for AirPods, and Aequs in Hubballi, Karnataka, which is now manufacturing MacBook mechanics. Motherson Group has also begun producing iPhone enclosures, joining Tata Electronics, which has been supplying iPhone components for the past three years. Tata Electronics has further expanded its capacity to export components to China. Other key suppliers in India now include Sunwoda for battery packs, Foxlink for cables, and Salcomp for coils, power packs, and magnetic components.

Apple currently assembles only iPhones in India, but production of AirPods is expected to begin soon. Meanwhile, components for MacBooks, Watches, and other Apple devices will continue to be shipped to China and Vietnam for final assembly. The company’s move to increase component sourcing from India is part of its broader strategy to reduce dependence on China while enhancing local value addition. This shift comes after India recorded over ₹1 lakh crore in iPhone exports in early 2024, according to previous reports by ET. "This is the beginning of a manufacturing ecosystem in India, exporting to China and Vietnam for the first time. While it's mainly components like enclosures now, the 'Make in India' initiative promises more advanced component manufacturing in the future," told Shah.

With Apple at the forefront, India's electronics industry is set for significant growth, establishing itself as a key global centre for component manufacturing in the near future.