India-China
India’s electronics industry has warned that China’s informal trade restrictions can put India’s smartphone export target in terrible threat. In this financial year, India’s target is 32 billion dollars of smartphone export. India Cellular and Electronics Association (ICEA) said in a letter to the government that China is deliberately putting restrictions without formal notifications. These restrictions are on capital equipment, minerals and technical personal, causing delays in shipment, cost is increasing. If this continues, India may suffer a loss of about 32 billion dollars.
Icea said that China’s Motiv Motiv is to damage India’s supply chain and stop the progress to become a global manufacturing hub. The cost of manufactures is increasing due to these restrictions and there is a problem in delivery on time. Icea, has demanded emergency action from the government. Currently, it includes companies like Apple, Google, Motorola, Foxconn, Vivo, Oppo, Lava, Dixon, Flex and Tata Electronics.
Threat to India
China’s restrictions have come when India is emerging as a global option in electronics manufacturing, especially for Apple. Till five years ago, all Apple’s iPhones were made in China, but under India’s production linked incentive (PLI) scheme started in 2020, Apple has increased production in India in collaboration with Foxcon and Tata Electronics. Now 20% of global iPhone production occurs in India. Apple, Google and Motorola are now exporting smartphones to the US from India. Samsung also holds a strong production capacity in India, although its main export hub is Vietnam.
Since 2020, smartphone production has increased in India. In the financial year 2025, India created a $ 64 billion smartphones, out of which $ 24.1 billion was exported. Smartphones have become the top export product of India. But Icea gave warning that China’s restrictions are putting this progress in risk. China launched restrictions on capital equipment last year which has now spread to electronics manufacturing. The production cost is increasing by 3-4 times from them. Also, Raw Material is being shortage from restrictions on the export of rare economies. China has ordered some of its companies to close operations in India and remove trend Indian personal. Apart from this, hundreds of workers of Chinese origin have been called back to the mid-way, causing technology transfer and skill training to be effective. Due to this, India’s competitiveness is impacting.