According to official sources, as bilateral relations improve, India is indicating a wider receptivity to Chinese investment in electronics production. The change occurs as India looks to increase its manufacturing capacity in the electronics industry, which is dominated by China, which now has 60% of the world’s production capacity. We wish to increase our manufacturing capacity, which now stands at 60% in China. Therefore, we cannot avoid working or collaborating with China in some capacity,” the official source stated.
The situation between China and India is improving. The aforementioned source stated that there are indications of improving relations, citing the recent visit of External Affairs Minister S Jaishankar to China and the reopening of tourist visas as proof. Dixon Technologies has been aggressively seeking alliances with several Chinese companies. According to insiders, a joint venture with Vivo, a Chinese smartphone manufacturer, is also being developed. According to government officials, industry concerns on Chinese partnerships are being addressed through ongoing discussions with the Ministry of External Affairs and other pertinent departments.
Regarding two recent issues regarding Chinese operations in India, the government seems to be adopting a practical stance. Sources minimized the effect on the larger electronics industry of the recall of Chinese employees from Foxconn facilities. Government sources said they were certain the sector would adjust to curbs on rare earth magnets. A number of workarounds are being investigated, such as looking for different suppliers or technologies and importing completed parts rather than raw materials.
