New Delhi: According to government sources, India is indicating increased openness to Chinese investment in electronics manufacturing as bilateral ties show signs of recovery.
The change occurs as India seeks to increase its manufacturing capacity in the electronics industry, which China presently controls with 60% of global production capacity.
Sixty percent of global production capacity is located in China, and we want to expand our manufacturing capacity. So, according to a government source, some cooperation or engagement with China is inescapable.
Things are improving between India and China. According to the aforementioned source, there are signals that tourist visas may be restored, with recent visits to China by External Affairs Minister S Jaishankar indicating improved connections.
Dixon Technologies has been aggressively seeking partnerships with a variety of Chinese businesses. According to sources, a collaboration with Chinese smartphone manufacturer Vivo is also in the works.
According to government sources, conversations with the Ministry of External Affairs and other relevant ministries are ongoing to address industry concerns regarding Chinese partnerships.
We are bringing up industry concerns with the MEA and other ministries in the hopes of finding a resolution, according to the source.
The government appears to be adopting a pragmatic approach to two recent challenges relating to Chinese activity in India. Sources downplayed the effect on the larger electronics business of the recall of Chinese employees from Foxconn facilities.
According to the source, the worker issue does not have a significant impact on the entire electronics sector, as Foxconn uses people from Taiwan, the United States, and Vietnam in addition to China.
Government sources expressed confidence that the sector will adjust to any restrictions on rare earth magnets. Several solutions are being investigated, including importing completed items instead of raw materials, and looking for alternative suppliers or technology.
According to the source, there are several methods for resolving this. The limitation applies only to the importation of that commodity. You create the component and import it directly. In other cases, you explore alternatives.
