The recent interaction between Prime Minister Narendra Modi and Chinese President Xi Jinping has instilled considerable optimism in the Indian electronics manufacturing sector. Discussions are underway to establish joint ventures and technological partnerships between Indian and Chinese firms. These developments are a consequence of US tariff pressures and the improvement in diplomatic ties between India and China, as seen at the Shanghai Summit. The impact of Trump’s tariffs extends beyond India, affecting the global supply chain.
According to reports, the majority of these collaborations are expected to focus on the electronics component sector. Indian manufacturers are actively seeking alliances with Chinese companies for technology transfer. Industry analysts say that the central government’s Electronics Component Manufacturing Scheme (ECMS) has provided a significant boost to companies, encouraging them to take these steps. Several companies are urgently requesting approval for the ₹22,919 crore incentive allocated by the government for component production. China’s involvement in India is expected to support large-scale manufacturing of high-value items, like printed circuit boards (PCBs), display modules, camera sub-assemblies, and batteries.