India permits 14 Apple part suppliers from China for domestic manufacturing

As India pushes for the ramping up of domestic smartphone manufacturing, the country has given initial clearance to 14 Apple suppliers from China. CNBC-TV18 had earlier reported that the Centre is reviewing its stance on Chinese investments to ensure global companies relocate to India. A unit of Sunny Optical Technology and Luxshare Precision are among those given approval, Bloomberg reported.

Many global manufacturers want to 'make in India' but want to continue JVs with existing Chinese partners. Apple, for one, is keen on making iPads in India but wants China's BYD — Apple's main iPad assembler to be allowed to ink a JV with an Indian entity.

These clearances are seen as a step toward full approval in India, but these suppliers must find a JV partner in the country.

CNBC-TV18 reported in December that government may consider allowing Chinese investments and joint ventures for intermediate-stage products where India does not currently have technological expertise.

Recently 13 to 14 JVs with Chinese companies were considered for mobile phone and electronics manufacturing. This comes against the backdrop of Vietnam emerging as a top alternative to China in high-tech electronics.

As a result of China's zero-tolerance policy on Covid-19, Apple's largest assembly plant in Zhengzhou was shut down last November due to an outbreak. Apple issued a rare warning just before the holiday season regarding delayed shipments.

Approval of these suppliers is essential for increasing production in India, as a local assembly of iPhones is considered a manufacturing success. India is actively working to attract more companies through its Production Linked Incentive (PLI) scheme.