Some of California-headquartered tech major Apple’s Chinese vendors may get approved by the government to establish manufacturing plants in India on a case-by-case basis. However, this would be done after making sure that the iPhone maker has no other option to source components.

According to officials in the know of the matter, the government is open to investments by Chinese entities that offer technology and production capabilities for which there is no alternative available. “If there is no alternative to the technology a vendor has to offer, the government has no issues in allowing it unless there are some concerns about the entity,” one of the officials told Economic Times.

This comes amid the government’s request to the world’s most valuable company to set up its entire manufacturing ecosystem in India spanning iPhones, iPads and computers. Apple, on the other hand, has also been ramping up India production to minimise its dependence on China.

The tech company has been asked to furnish a list of vendors as these would be vetted before the government gives its nod, the official shared. If concerns are found about the vendor and there is no alternative available, the Indian manufacturer will need to import the components. The official noted that the government would also suggest a transfer of technology for local manufacturing.

However, Apple continues to import many components. In April 2020, India introduces amendments to the foreign direct investment (FDI) policy and made it mandatory to seek government’s nod for foreign investment from countries sharing a land border with it. Prior approval was necessitated for sectors that were otherwise on the automatic route.