India’s electronics sector has expressed deep concern over China’s informal trade curbs, warning that these measures could undermine the country’s manufacturing momentum and threaten its ambitious smartphone export target of $32 billion for the current fiscal year, The Economic Times reported. According to the India Cellular and Electronics Association (ICEA), Chinese authorities are implementing unofficial restrictions aimed at disrupting India's supply chain. In a letter addressed to the Indian government, the association alleged that delays at Chinese ports, along with constraints on exporting machinery and skilled personnel, are creating serious production bottlenecks. These disruptions are driving up costs and affecting export timelines.

The ICEA, which represents major global brands such as Apple, Google, Vivo, Oppo, Motorola, Foxconn, Dixon, Tata Electronics, and others, said that while domestic production remains unaffected for now, the country’s export-focused manufacturing sector is increasingly at risk. Exports touched $24 billion in FY25 and are expected to cross $32 billion this year, but this outlook is now under pressure due to external challenges.

These developments come at a time when India is positioning itself as a major player in global electronics manufacturing, particularly as a key alternative to China. Apple’s contract manufacturer Foxconn has reportedly started pulling out hundreds of Chinese engineers and technicians from its Indian operations, a move that could impact production timelines for the upcoming iPhone 17, slated for release in September.

Moreover, some Chinese equipment makers that had previously planned to set up factories in India are now stepping back. Sources indicate that Chinese authorities are intentionally withholding critical manufacturing equipment meant for Indian production units, particularly those linked to iPhone assembly. Customs officials in China are said to be detaining machinery indefinitely, without formal reasons or written instructions. ICEA has called on the Indian government to urgently step in and address these escalating concerns. The association emphasized that the restrictions are not being imposed through official policy but are instead being enforced informally through verbal instructions—making them difficult to contest or plan around.

Despite the mounting challenges, India’s smartphone exports reached a new peak in March 2025, with $3.1 billion worth of shipments. Apple has reportedly accelerated its exports to the US to build stock in anticipation of potential tariff hikes. Since October last year, monthly mobile phone exports have consistently remained above the $2 billion mark, largely driven by the government’s Production-Linked Incentive (PLI) scheme launched in 2020. Thanks to this policy, India’s annual smartphone exports jumped to $24.1 billion in FY25.

In recent years, India has emerged as a vital hub in Apple’s global supply chain. Until five years ago, iPhones were exclusively made in China, but now India accounts for around 20% of global iPhone production. This growth has been supported by manufacturers like Foxconn and Tata Electronics, helping India establish itself as a serious contender in the global electronics space. However, the future of this momentum may hinge on how the country navigates increasing trade friction with China.