Recent discussions between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping have sparked significant optimism within India’s electronics manufacturing sector. Joint ventures and technology partnerships between Indian and Chinese companies are gaining momentum, influenced by US tariff pressures and improvements in India-China diplomatic relations, stemming from the Shanghai Summit. The global supply chain faces pressure, not only impacting India.
Reports indicate that many of these partnerships will likely focus on the electronics component sector. Indian manufacturers are seeking collaborations with Chinese companies for technology transfer. Industry insiders note that the government’s Electronics Component Manufacturing Scheme (ECMS) has significantly encouraged companies to pursue these ventures. Several companies are urgently seeking approval for the government’s incentive of ₹22,919 crore allocated for component production. Chinese involvement in India is expected to facilitate large-scale manufacturing of high-value products such as printed circuit boards (PCBs), display modules, camera sub-assemblies, and batteries.