In a landmark shift for global supply chains, India’s electronics component exports to China have surged to a record $2.5 billion in the current fiscal year (FY26). The surge is almost entirely driven by Apple’s expanding manufacturing ecosystem in India, signaling a dramatic reversal in the historical trade dynamic where China served as the sole supplier of parts to Indian assembly lines.
Industry estimates suggest these exports could reach $3.5 billion by the close of the fiscal year, a massive leap from the $920 million recorded in FY25.
A “Plot Twist” in Global Manufacturing
For decades, the “China-to-India” flow of electronics was a one-way street. However, the maturation of India’s local supply chain—fueled by the Production Linked Incentive (PLI) and the newly bolstered Electronics Component Manufacturing Scheme (ECMS)—has enabled Indian vendors to compete on both quality and scale.
- Key Contributors: Shipments are being led by Apple’s primary vendors and partners, including Foxconn, Tata Electronics, Pegatron, Motherson, and Salcomp.
- Export Categories: The $2.5 billion in exports primarily consists of high-value sub-assemblies such as Printed Circuit Board Assemblies (PCBA), complex device housings, flex PCBAs, and specialized conductive graphite components.
- Volume Growth: While India’s overall electronics exports to China were negligible just three years ago, they now account for a significant portion of the projected $18 billion in total exports to China for FY26.
The “China+1” Strategy in Action
Market analysts view this development as the most tangible evidence yet of the “China+1” strategy. As Apple diversifies its production hubs, India-made components are now being routed back into Chinese factories to maintain global supply continuity and mitigate geopolitical risks.
“India is no longer just the world’s assembly floor; it is becoming a critical node in the upstream supply chain,” says a senior executive tracking industry data. “The fact that Indian-made parts are now feeding into Chinese assembly lines was an outcome few anticipated when iPhone production first shifted to India in 2021.”
India’s Electronics Trade Snapshot (FY26 Projections)
| Metric | FY25 (Actual) | FY26 (Projected) | Growth |
| Component Exports to China | $920 Million | $3.5 Billion | +280% |
| Overall Exports to China | $14.25 Billion | $18.50 Billion | +30% |
| Domestic Value Addition | ~12–15% | 20–25% | Significant |
Policy Boost: The Role of ECMS 2025
The surge is being credited to the Electronics Component Manufacturing Scheme (ECMS), which saw its outlay increased to ₹40,000 crore ($4.8 billion) in 2025. Unlike earlier schemes that focused on the final assembly of smartphones, ECMS offers aggressive capital expenditure incentives for building the “guts” of the devices.
As of April 2026, over 28 major component projects have commenced construction across industrial hubs in Tamil Nadu, Karnataka, and Uttar Pradesh, further cementing India’s role as a global hardware hub.
The Road Ahead: PLI 2.0
With the current smartphone PLI scheme set to expire in March 2026, industry bodies are actively lobbying the Centre for a “PLI 2.0”. The goal is to sustain this momentum and increase India’s share of global mobile phone production to 30–35% by 2030, potentially making China one of India’s largest export destinations for high-tech goods.
