India is showing a more open stance toward Chinese investment in its growing electronics manufacturing sector, as bilateral relations between the two nations gradually improve, government sources said on Friday.
With China currently holding 60% of the global electronics manufacturing capacity, Indian officials acknowledged that some degree of collaboration is necessary to achieve India’s expansion goals. “Sixty per cent of manufacturing capacity is in China and we want to grow our own. So some collaboration with China is something we can’t avoid,” a senior government official said.
Recent developments, including the reopening of tourist visas and External Affairs Minister S. Jaishankar’s visit to China, are being interpreted as signs of easing tensions between the two countries.
Indian electronics manufacturer Dixon Technologies is reportedly in active discussions with several Chinese firms and is working toward a joint venture with Chinese smartphone maker Vivo.
The government is also in talks with the Ministry of External Affairs and other concerned ministries to address regulatory and security-related concerns regarding Chinese partnerships in the sector.
Addressing concerns about recent developments—including the withdrawal of some Chinese workers from Foxconn facilities—sources downplayed the broader impact. “The worker issue is limited and does not affect the entire electronics industry,” the source stated, highlighting the diversified workforce that includes personnel from Taiwan, the U.S., and Vietnam.
Regarding curbs on rare earth magnet imports from China, officials noted that the industry is exploring alternative strategies such as importing finished components or finding new suppliers and technologies. “There are a number of ways to overcome this. The restriction is on importing the raw material, not the component,” a source explained.
The signals indicate a pragmatic approach by India, balancing national security considerations with the need to accelerate domestic electronics production through strategic global partnerships.