China's new strategy regarding India's mobile and electronics industry has raised concerns. The India Cellular and Electronics Association (ICEA) has written a letter to the central government, warning that China has begun imposing certain informal restrictions without any formal announcement, which could directly impact India's smartphone exports. The association says these restrictions jeopardize the export target of $32 billion set for 2025.
Direct Impact on India's Supply Chain
According to ICEA, China has deliberately imposed informal restrictions on capital equipment, rare minerals, and technical staff. This has significantly increased manufacturing costs in India and is causing delays in shipments. The organization also claims that China's intention is to weaken India's global manufacturing position so that it cannot advance in the international market.
Companies Like Apple and Google Could Be Affected
These informal restrictions could directly affect companies that export smartphones from India to the US, Europe, and other countries. ICEA's member companies include Apple, Google, Motorola, Vivo, Oppo, Foxconn, Lava, Dixon, Flex, and Tata Electronics. These companies have established large-scale manufacturing units in India and have also made significant investments under the Production Linked Incentive (PLI) scheme.
Impact on iPhone Manufacturing in India
In the past few years, India has emerged as a major hub for iPhone production. Until five years ago, all iPhones were made in China, but now approximately 20% of global production comes from India. Companies like Tata Electronics and Foxconn have established large iPhone manufacturing units in Tamil Nadu and Karnataka. Smartphones are exported from these units to the US and European countries.
Smartphones Have Become India's Largest Export Item
In fiscal year 2025, India manufactured $64 billion worth of smartphones, of which $24.1 billion worth of phones were exported. This has made this product India's top export item. However, ICEA has warned that if the restrictions imposed by China continue in this way, this entire growth model could be at risk.
Increased Shortage of Rare Earth Minerals
China has also imposed export restrictions on rare earth minerals, which are essential in electronic devices. Due to the shortage of these minerals in India, many units are not receiving raw materials on time. This is slowing down production and causing companies to miss their deadlines.
Impact on India's Competitiveness in the Global Market
India has rapidly promoted the manufacturing sector in the past three years, and has taken several steps towards becoming an alternative to China, especially in the mobile industry. However, ICEA has emphasized that if this strategy of China continues, India's global competitiveness could suffer a major blow.
Demand for Immediate Government Intervention
ICEA has urged the Indian government to take this matter seriously and take concrete steps at the diplomatic level against these policies of China. The organization believes that this is not just a matter of trade but also of India's strategic manufacturing position, in which delay can be detrimental.
India vs. China: The Manufacturing War
Several steps have been taken by the central government to make India the next manufacturing hub. However, this new strategy of China seems to be an attempt to slow down that progress. The PLI scheme, the Make in India campaign, and the growing confidence of global brands in India are now overshadowed by China's restrictions.
