India allows entry of Chinese suppliers to boost Apple's local manufacturing

Following tensions between India and China, major Chinese smartphone and electronics firms such as Xiaomi declared that they are locally manufacturing most products for Indian markets. But this hasn't stopped them from facing scrutiny and restrictions, as Chinese apps have also faced the government's ire. But as India tries to position itself as a manufacturing hub for smartphones and semiconductors, it has opened doors for Apple's Chinese suppliers to start operations in the country.

Still need local businesses

According to reports, key ministries in India have given their nod to Luxshare Precision, a firm which assembles iPhones and AirPods. Along with it, a lens manufacturer Sunny Optical Tech has also received approval to set up a unit in the country. But despite the government clearance for entering India, these suppliers will have to find local partners for forming a joint venture.

Breaking barriers for growth

In an effort to build its own tech manufacturing capacity, India has defied the political deadlock with China over confrontation on its borders. This is a continuation of India's policy to place economic growth above geopolitics, just as it did to buy discounted oil from Russia despite western pressure.

More iPhones than ever before have already been manufactured in India for the device's 14th generation, by Taiwanese firms Foxconn and Pegatron. These firms have also received parts from local manufacturers such as Tata, but still need suppliers from China to boost capacity.