Modi government wants Apple to build component ecosystem in India
What's the story
India is pushing Apple and its suppliers to set up a local component ecosystem for domestic use and exports, as per Moneycontrol. The move comes before the tech giant could expand its assembly operations in the country to include products like iPads, MacBooks, and Apple Watches. The strategy is aimed at making India a key part of Apple's global supply chain by producing more components that can be shipped to manufacturing hubs in China and Vietnam.
Expansion plans
Government aims to expand manufacturing operations
The Indian government hopes that this local component base will help expand beyond iPhone and AirPods manufacturing operations.
A government official told Moneycontrol, "The expectation is that the entire product line should come to India."
They added some parts are already being made here, like mechanics, including enclosures for exports.
The official also said final product manufacturing will start coming to India gradually.
Future prospects
Union minister hints at broader product expansion
Union Electronics and IT Minister Ashwini Vaishnaw recently hinted at Apple's potential expansion beyond iPhone manufacturing in India.
This could mean a wider local footprint for the company, including products like MacBooks and iPads.
However, it's important to note that the focus is currently on building a supplier ecosystem rather than immediate production of these finished products in India.
Component emphasis
Focus on mechanical components
Mechanical components, a broad category including enclosures, casings, and other parts used across electronic products, are a major focus.
Indian Apple vendors are already exporting a range of these components to China and Vietnam.
This includes printed circuit board assemblies (PCBAs), mechanical parts, housing, as well as flex PCBAs, among others.
Production
Apple suppliers ramping up production in India
Indian facilities of Apple suppliers such as Foxconn, Tata Electronics, Tata-owned Pegatron, Motherson, Salcomp, Jabil, TRIL Bangalore, Aequs and Yuzhan Technology are increasingly producing parts for export.
These parts are sent to China and Vietnam where they're incorporated into Apple products and shipped worldwide.
The Ministry of Electronics and Information Technology is also promoting this under the Electronics Components Manufacturing Scheme (ECMS).