The recent meeting of Prime Minister Narendra Modi and Chinese President Xi Jinping has given rise to great expectations for the Indian Electronics Manufacturing sector. Discussion between Indian and Chinese companies about joint venture and technology partnership is intensifying. All this is possible due to the improvement in India-China diplomatic relations with the US tariff pressure and meeting held at the Shanghai Summit, because Trump Tariff is pressure on not only India, but on the global supply chain.
According to media reports, most partnerships can be in the electronics component area. Indian manufacturers are looking for an alliance with Chinese companies for technology. People associated with the industry say that the Central Government’s Electronics Component Manufacturing Scheme (ECMS) has encouraged companies to a large extent for this move. Many companies are demanding immediate approval for an incentive amount of Rs 22,919 crore set by the government for component production. China’s participation in India will help in building massive products such as the printed circuit board (PCB), display module, camera sub-assembly and batteries.
Joint venture proposal
India’s largest contract electronics manufacturer Dixon can start a joint venture allegedly with Chongking Yuha Prosics Manufacturing for the production of technologies. According to the information, Dixon is already in talks with companies like HKC and Vivo. Recently, he has received approval for a joint venture with Longchier. New applications for display modules, camera modules and parts from the company are also in the process.
What is the benefit of joint venture?
The government wants any Chinese investment to come up with the transfer of technology, because China is ahead in terms of technology. Indian manufacturers will also benefit from the introduction of new joint venture. China is a big player of the Global Supply Chain and more than 60% of the electronics manufacturing comes from there. India cannot increase its local capacity without connecting China. Sources associated with the industry say that the Ministry of Electronics and IT believes that selected Chinese investment in electronics manufacturing is necessary for India’s ambitions.