Apple Secures Five Anchor Vendors as Centre Approves INR 41,863 Crore ECMS Scheme

With the registration of five significant firms as anchor vendors under the government's Electronics Components Manufacturing Scheme (ECMS), Apple has taken a clear lead in India's efforts to develop a comprehensive electronics components ecosystem. According to Business Standard, the companies, which are a combination of huge Indian conglomerates and international suppliers, will invest over INR 30,537 crore to produce essential parts for Apple and the larger global supply chain.

The Ministry of Electronics and Information Technology (Meity) approved an investment of INR 41,863 crore for 22 enterprises under the third tranche of ECMS on 2 January, of which the five anchor vendors make up roughly 73%. The programme provides production-linked incentives to promote domestic production of electronic components, a sector in which India has historically lagged despite its quick ascent to prominence as a hub for smartphone assembly.

In addition to creating several times as many indirect jobs throughout logistics, tools, services, and related industries, these anchor investments alone are predicted to create around 27,600 direct jobs, according to government projections cited in the paper. The size of their proposed facilities will allow them to serve other domestic and international electronics manufacturers as well, expanding India's supply base even though all five companies are now important suppliers to Apple.

Apple Expanding its Partner Network in India

In later stages, Apple is anticipated to add more partners. The business has been aggressively looking for producers of specialised equipment and subassemblies needed for the manufacturing of smartphones. When Meity approves the upcoming group of applications under the programme, more partnerships are probably going to be revealed.

Three significant Indian companies—Tata Electronics, Motherson Electronic Components, and aluminium giant Hindalco—as well as two multinational corporations are among those getting approval. The two multinational corporations that are included are ATL Battery Technology India Ltd, a division of Japan's TDK group, and Yuzhan Technology, a member of the Foxconn group and the biggest investment to date.

Apple is working to develop end-to-end capacity in India for iPhone enclosures, which is one of its main areas of concentration. The goal is to establish India as a global centre for enclosures, including supplies to China, in addition to satisfying domestic demand and promoting exports. Only a small percentage of Apple's enclosure needs for iPhones manufactured in India are now met domestically, primarily by Tata Electronics.

Govt Approved 22 Additional Applications Under ECMS

On January 2, 22 further applications with proposed investments of INR 41,863 crore were approved by the government under the Electronics Component Manufacturing Scheme (ECMS). With this round, 46 enterprises have received approvals under the plan, bringing the total amount of pledged investment to INR 54,567 crore. TDK India, BPL, Wipro Hydraulics, Tata Electronics, Motherson Electronic Components, Foxconn arm Yuzhan Technology, Samsung Display, Dixon, and Hindalco are among the companies that have received approvals. The projects include the production of lithium-ion cells, capacitors, enclosures, displays, and camera modules.

While pointing out that important semiconductor assembly units will start production by year-end, Union IT Minister Ashwini Vaishnaw advised businesses to develop internal design teams, adhere to Six Sigma quality standards, expand domestic sourcing, and work together on shared design infrastructure. The government anticipates that these expenditures would draw in additional multinational component manufacturers and greatly increase the local value addition in cellphones, which is now projected to be between 15 and 20%, with a longer-term goal of about 35%.