Apple’s Chinese vendors get OK for India entry

· Apple on the Lookout for JV Partners in India

· Special Visas for Expat Chinese to be Issued by Home Ministry

As many as 12-15 Chinese companies, which are vendors to Apple, will get the go-ahead to supply critical components as domestic supplies are unavailable.

Apple had approached the Centre to get its manufacturing ecosystem to India in a bid to ramp up its production from the country. While the government has taken a tough view on allowing Chinese companies, including those already in India, to get fresh investments due to sensitivities, an exception has been made in case of Apple vendors, sources said.

There were concerns about allowing majority Chinese control of these companies that supply parts to Apple but the government decided to permit entire shareholding to be held as a special case. The concerns over the entry of other Chinese companies, however, remain and a relaxation is unlikely, sources said.

They said that the components that these outfits make are critical to the entire Apple production chain. In fact, some top Indian companies and conglomerates had been approached several months to see if the parts could be domestically produced, reducing the need to allow Chinese companies. But with the Indian players unable to produce the desired results, the Chinese vendors of Apple are now being let in.

Some of these companies, which are little known, already have a small presence in India but are now expected to ramp up operations significantly.

Since the outbreak of Covid 19 three years ago, several global giants have been looking to rework their production bases and the government has successfully managed to woo three of Apple’s contract manufacturers to the country -- Foxconn, Wistron and Pegatron -- which are now manufacturing the latest iPhones from India.

Chinese companies, which are vendors to Apple, will get the go ahead to supply critical components as domestic supplies are unavailable