Apple's Chinese Suppliers Win Expansion Permits In India As iPhone-Maker Attempts To Reduce Dependence On China

More than a dozen Apple Inc's AAPL Chinese suppliers won initial clearance from India to expand as the iPhone maker strived to diversify its assembly network beyond China.
About 14 suppliers bagged permits from India after Apple promoted the need for their growing presence in India, Bloomberg reports.
AirPods and iPhone assembler Luxshare Precision Industry Co and Sunny Optical Technology (Group) Co Ltd SOTGY lensmaker unit were among the companies that bagged approvals. However, the companies will need to find local Indian joint venture partners.
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The clearance signaled how India milked China's pandemic crisis and geopolitical tensions with the U.S.
The Indian government prioritized the growth of India's manufacturing sector, doling out financial incentives and government support for companies' expansion projects.
Apple played a pivotal role in furthering India's aspirations with partners like Hon Hai Precision Industry Co Ltd HNHPF Foxconn churning record iPhones in the country for the latest generation.
Indian companies, like Tata Group, already supply components to Apple while the country strived to add more local providers into the supply chain to boost its electronics industry.
Joint ventures with Chinese component makers are a way of promoting India's electronics industry.
India essentially cut off Chinese companies, including Alibaba Group Holding Limited BABA, from its tech economy after the countries' troops clashed violently on their long-disputed border in 2020.
India steadily ramped up the local assembly of smartphones, allowing Taiwanese manufacturers Hon Hai, Wistron Corp WICOF, and Pegatron Corp PGTRF to set up plants. But the absence of crucial component makers close to their operations stunted the domestic industry's growth prospects.
Price Action: AAPL shares closed higher by 0.88% at $135.94 on Tuesday.
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