Kamal Ghorui
Experts say the surge in electronics exports represents an unexpected boost from the smartphone production-linked incentive scheme. (AI image)
In a big achievement for the government’s electronics component manufacturing scheme (ECMS), Apple’s India vendors have already exported a record $2.5 billion components to China. The development also signals a shift from the earlier pattern, where Chinese firms supplied parts to India for mobile phones and other electronic products.Industry estimates suggest India could reach $3.5 billion in electronics exports to China in FY26, with $2.8 billion already achieved by January. This marks a sharp rise from about $920 million in FY25, with exports being negligible in earlier years. Several Apple suppliers in India contributed to shipments to China, including Foxconn, Tata Electronics, Tata-owned Pegatron Technology India, Motherson, Salcomp, TRIL Bangalore and Yuzhan Technology,Several Apple suppliers in India contributed to shipments to China, including Foxconn, Tata Electronics, Tata-owned Pegatron Technology India, Motherson, Salcomp, TRIL Bangalore and Yuzhan Technology, according to an industry executive tracking the data.As data from other sectors becomes available, India’s overall exports to China are expected to exceed $18 billion, up from $14.25 billion in FY25. One person familiar with the matter told ET that this growth is largely driven by Apple-related shipments.Experts say the surge in electronics exports represents an unexpected boost from the smartphone production-linked incentive scheme and the electronics component manufacturing scheme, which have encouraged Apple to develop a strong domestic supply chain. This ecosystem has now reached a level of competitiveness that allows India to export parts and sub-assemblies back to China.An industry executive said this outcome was not anticipated when Apple first began shifting iPhone production from China to India in 2021.Under the smartphone production-linked incentive scheme over a five-year period, Apple manufactured iPhones worth $70 billion in India, with exports accounting for $51 billion, or nearly 73 percent of the total, largely destined for the United States. This has made iPhones the country’s top export item in the last fiscal year.The exported components span a wide range, including printed circuit board assemblies, mechanical parts, casings, flexible PCBAs and conductive graphite buttons used for functions such as volume and power. These shipments fall under three harmonised system of nomenclature codes and have picked up momentum since April 2025, the executive said.While the smartphone PLI scheme has already delivered strong results, largely driven by Apple’s local iPhone production, the electronics component manufacturing scheme is expected to achieve similar success in the components segment.Following its success in smartphone manufacturing, the government is now shifting its focus toward boosting domestic value addition, expanding component production and increasing exports under the electronics component manufacturing scheme. With the original smartphone production-linked incentive programme concluding in March, industry players have called for a second phase, or PLI 2.0, to maintain growth momentum.Together with a potential PLI 2.0 and the ongoing scheme for components, Indian firms could capture 30 to 35 percent of global mobile phone production and play a larger role in international electronics supply chains. China, which currently accounts for a significant share of India’s electronics imports, may also emerge as a key export market for Indian component makers.“India can eventually become a large exporter to China, whose cumulative imports of electronics exceeded $600 billion during CY25,” said an industry executive who tracks China’s trade data.
