Easing China Tensions May Boost Electronics JVs in India

The recent easing of tensions between India and China could open the door for faster government approvals of joint ventures between Indian electronics companies and Chinese component suppliers.
Industry experts say such collaborations are vital for scaling up local manufacturing in areas like printed circuit boards (PCBs), display modules, camera sub-assemblies, and batteries.

Strategic Push for Domestic Manufacturing

In the backdrop of trade frictions between New Delhi and Washington, these partnerships could help India strengthen its electronics manufacturing base. Several electronics manufacturing services (EMS) firms already have pending proposals with the government, many involving technology-transfer deals with Chinese partners.

However, India’s 2020 FDI policy requires government clearance for investments from countries sharing a land border, which had slowed down approvals.

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Signs of a Positive Shift

Industry insiders suggest the climate is now more favourable.
“Lately, the situation has improved and is looking better than before. We have submitted proposals and are awaiting approvals for planned JVs with leading Chinese companies,” said a senior EMS firm executive.

Why These Partnerships Matter

Experts point out that joint ventures can bridge critical technology gaps, reduce dependence on imports, and support India’s long-term manufacturing ambitions. Faster clearances could accelerate the growth of domestic supply chains in the electronics sector.

Key Highlights:

• Improved India-China ties may speed up JV approvals in electronics manufacturing.

• Critical for sectors like PCBs, display modules, camera parts, and batteries.

• EMS firms await government nod for technology-transfer deals.
  
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