Apple Inc.’s Chinese suppliers given clearance in India

Over a dozen Chinese suppliers for Apple Inc., have received initial clearance by India to expand their manufacturing base in the country. The Chinese component manufacturers, however, will have to tie up through local joint ventures in India to operate.

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New Delhi, Jan. 19: India has given the nod to over a dozen companies from China to set up Apple phone manufacturing plants in the country. Apple Inc’s Chinese suppliers, however, will be required to enter into joint ventures with local companies. The decision may help the tech giant to diversify its assembly lines beyond China.

According to latest media reports, the tech giant submitted a list of about 17 suppliers to Indian authorities. Out of the initial applicants submitted by Apple, 14 have been granted permission by the authorities. The clearance by New Delhi for Chinese suppliers along with home-grown venture partners will help Apple to diversify its manufacturing base away from China.

As of now, companies like Tata Group are already providing Apple with components. The latest decision to allow Apple’s Chinese manufacturers to set up JV in India will lead to more local providers into the supply chain. This could further result in a boost and diversify the domestic electronics industry.

Apple Inc. named the recommended manufacturers as companies whose services it needs to increase its presence in India. In the last five years, PM Narendra Modi has focused on growing India’s manufacturing sector, providing Production Linked Incentives to mass manufacturers establishing their base in India.

Since 2020, India largely cut off Chinese companies from its tech economy after the countries’ troops clashed violently on their long-disputed border. Afterwards, India banned apps of Alibaba Group Holding Ltd, ByteDance Ltd, and tightened rules that forbid companies from bordering countries from entering without government consent.