India's Strategic Shift in Electronics Manufacturing

Indian electronics component manufacturers are rapidly moving away from Chinese firms, turning instead to partnerships with South Korean, Taiwanese, and Japanese companies. This significant shift comes as the application deadline for the electronics component manufacturing scheme approaches, with major domestic players like Epack Durable, Dixon Technologies, and Amber Enterprises leading the charge.

Why the shift? The change reflects India's stringent stance on Chinese foreign direct investment (FDI), necessitating approvals from multiple ministries under Press Note 3 regulations, a move sparked by border disputes in 2020. This has led to a notable reduction in Chinese collaborations, with only a few major enterprises securing necessary approvals.

New Partnerships and Investments

Companies are now focusing on technical partnerships and equity stakes with non-Chinese firms. For instance, Dixon Technologies is finalizing terms with South Korean and Taiwanese enterprises, while Amber Enterprises plans a Rs 4,000 crore investment under the scheme, highlighting the industry's pivot towards diversification and self-reliance.

The scheme, with an allocation of Rs 22,919 crore over six years, aims to boost domestic value addition from 20% and integrate Indian firms into global value chains. Anticipated investments of Rs 59,350 crore could generate products worth Rs 4,56,500 crore and create over 91,600 direct jobs.

Looking Ahead

With over 100 applications already received, the initiative is set to transform India's electronics manufacturing landscape. As companies like PG Electroplast and Optiemus explore partnerships with Taiwanese and South Korean firms, the sector is poised for significant growth, reducing reliance on Chinese components and fostering global collaborations.