India’s electronics industry marked a milestone in FY26 as factories shipped $2.5 billion worth of Apple components to China, a sharp rise from $920 million in FY25.
This shift signals a reversal in trade flows, with India emerging as a supplier rather than a consumer of Chinese parts.
According to industry reports, exports could reach $3.5 billion by the end of FY26, with $2.8 billion already achieved by January. The surge reflects Apple’s expanding operations in India, where iPhones worth $70 billion have been produced over five years, with $51 billion exported.
Key firms driving this growth include Foxconn, Tata Electronics, and Pegatron. These companies now export printed circuit board assemblies (PCBAs), mechanical components, and housings to China. Executives credited India’s production-linked incentive (PLI) scheme and the newer electronics component manufacturing program for enabling this transformation.
Industry leaders noted that such growth was unimaginable when Apple began shifting iPhone production from China to India in 2021. The government now aims to increase local value addition and expand exports further, with calls for a PLI 2.0 scheme to sustain momentum.
Experts believe India is moving beyond assembly to become a global component supplier. Projections suggest Indian firms could account for 30 to 35 per cent of global mobile phone production in the coming years. This development positions India as a critical player in reshaping global electronics supply chains.
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