The possibilities of joint ventures and technology partnerships in electronics manufacturing between Indian and Chinese companies have intensified. Amidst the meeting between PM Modi and President Xi Jinping, and the pressure of Trump's tariffs, this collaboration can prove to be a significant step towards strengthening India's electronics sector in the global supply chain.
India-China: Discussions are underway between Indian and Chinese companies for joint ventures to boost the electronics sector in India. This initiative has gained momentum following the recent meeting between Prime Minister Narendra Modi and Chinese President Xi Jinping. Experts say that the pressure of US tariffs and discussions at the Shanghai Summit have paved the way for this cooperation. In this scenario, the proposed partnership can provide India with an opportunity for technological collaboration and to scale up its mass production capabilities.
Preparations for Partnership in the Electronics Components Sector
According to sources, the proposed cooperation will primarily focus on electronics component manufacturing. Indian manufacturers are seeking alliances with Chinese companies for technological collaboration. The government's Electronics Component Manufacturing Scheme (ECMS) is becoming a major support in this direction.
Under this scheme, companies are awaiting incentive amounts totaling Rs 22,919 crore. Industry experts believe that an India-China partnership will enable large-scale production of high-end products such as Printed Circuit Boards (PCBs), display modules, camera sub-assemblies, and batteries.
Increased Discussions Between Dixon and Chinese Companies
Dixon Technologies, a leading contract electronics manufacturer in India, may soon enter into a joint venture with China's Chongqing Yuhai Precision Manufacturing for component production. The company is also in talks with major Chinese companies like HKC and Vivo.
Recently, Dixon received approval for a joint venture with Longcheer. Additionally, the company is moving forward with new applications for display modules, camera modules, and other components.
India to Benefit from Technology Transfer
The central government has clearly stated that technology transfer is essential with any Chinese investment. This will directly benefit Indian manufacturers and rapidly enhance local capabilities.
According to industry sources, the Ministry of Electronics and Information Technology (MeitY) acknowledges that India cannot advance its ambitious manufacturing plans without engaging with China, which holds over 60% share in the global supply chain. This is precisely why selective Chinese investment can prove crucial for India.
