In a notable development, India has begun exporting electronic components to China and Vietnam for the assembly of Apple products like MacBooks, AirPods, Apple Watch, Apple Pencil, and iPhones. This marks a significant milestone in Apple's strategy to diversify its supply chain and highlights India's evolving position in the global electronics manufacturing landscape.

Several Indian companies have been instrumental in this transformation:

• Tata Electronics: Initiated as Apple's first local supplier three years ago, Tata Electronics manufactures mechanics, including enclosures, for iPhones. The company has expanded its capacity to cater not only to domestic demand but also to export components to China.
• Jabil: Based in Pune, Jabil produces mechanics for AirPods and has recently added components for the Apple Pencil to its manufacturing portfolio.
• Aequs: Located in Hubbali, Karnataka, Aequs manufactures mechanics for MacBooks and has expanded to include components for the Apple Watch.
• Motherson Group: The latest addition to Apple's supply chain in India, Motherson Group has commenced production of enclosures for iPhones.

This strategic shift is part of Apple's broader initiative to enhance domestic value addition and establish a robust local ecosystem in India. By engaging local manufacturers, Apple aims to reduce its dependence on a single market and mitigate potential supply chain disruptions.

Industry experts view this development as a catalyst for India's electronics sector. Neil Shah, Vice President at Counterpoint Research, noted, “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.”

The Indian government's 'Make in India' initiative has played a pivotal role in this transformation. By fostering a conducive environment for manufacturing and offering incentives, the program has attracted global players to set up production facilities in the country. As a result, India is on track to achieve its component export target of $35-40 billion by the fiscal year 2030-31.

In summary, India's emergence as a key player in Apple's global supply chain underscores the success of the 'Make in India' initiative and signals a promising future for the country's electronics manufacturing industry.