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Industry body warns China's curbs threaten India's smartphone exports
India's export-linked manufacturing under threat
In a letter to the government, the India Cellular and Electronics Association (ICEA) alleged that the Chinese measures were intended to disrupt India's supply chains.
While domestic production remains stable, the association said, export-linked manufacturing—which reached $24 billion in FY25 and is projected to cross $32 billion this year—is now under significant threat.
According to the ICEA, delays at Chinese ports and restrictions on outbound shipments of machinery and skilled labour are driving up costs and hurting timelines. The association represents top electronics brands and manufacturers, including Apple, Google, Motorola, Foxconn, Vivo, Oppo, Lava, Dixon, Flex, and Tata Electronics.
These developments occur as India positions itself as a global alternative for electronics manufacturing, particularly for Apple's iPhone production. Foxconn Technology Group has been repatriating hundreds of its Chinese engineers and technicians from its Indian operations. This move is expected to disrupt Apple's manufacturing timeline for the iPhone 17, which is due to be unveiled in mid-September. Additionally, certain Chinese equipment manufacturers that had previously earmarked land for new facilities in India have now withdrawn those plans.
Reports indicate that China is signalling its intent to keep key machinery technologies domestic. Chinese Customs authorities are also said to be indefinitely holding essential equipment that would otherwise be retrofitted into Indian assembly lines for iPhone 17 production.
Call for government intervention
ICEA has urged the central government to promptly intervene, specifically addressing recent Chinese controls on capital equipment, raw materials, and skilled technical labour. The association stressed that these restrictions are being implemented without any formal notifications and only through verbal instructions.
Smartphone exports from India reach an all-time high
Despite the challenges, mobile phone exports from India hit a record high of $3.1 billion in March, with Apple increasing shipments to the US to build stockpiles ahead of potential tariffs. Since October of the previous year, monthly exports have consistently remained above the $2 billion mark. Driven by the production-linked incentive (PLI) scheme, introduced in 2020, annual mobile phone exports surged to $24.1 billion in FY25.
Apple's shift to India from China
Until around five years ago, all iPhone manufacturing took place in China. But with Apple diversifying its supply chain, India has steadily emerged as a secondary hub. Now, India contributes around 20 per cent of global iPhone output, with assembly handled by Foxconn (Hon Hai) and Tata Electronics.
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