The meeting between Prime Minister Narendra Modi and Chinese President Xi Jinping has brought forth fresh opportunities for India’s electronics manufacturing sector. Discussions about joint ventures and technology partnerships between Indian and Chinese companies are escalating. This is happening due to the pressures from US tariffs and the improving relations between India and China, reinforced by the Shanghai Summit. The ramifications of the Trump tariffs are affecting the global supply chain.
Reports indicate that most partnerships will concentrate on electronics components. Indian manufacturers are actively seeking collaborations with Chinese firms to acquire technology. Industry observers point out that the government’s Electronics Component Manufacturing Scheme (ECMS) has been instrumental in encouraging companies to pursue these ventures. Many companies are seeking quick approval for the ₹22,919 crore incentive provided by the government for component production. The presence of Chinese firms in India is expected to help in mass-producing costly items such as printed circuit boards (PCBs), display modules, camera sub-assemblies, and batteries.