Explained: Why Chinese electronics companies are getting a break in India

A small policy relaxation outside the rubric of Press Note 3 is designed to help global and domestic electronics manufacturing build a local supply chain ecosystem

Surajeet Das Gupta New Delhi

Under a policy shift that Apple, which is aiming to shift 12-20 per cent of its iPhone assembly by value to India by 2026, managed to get approval for investments by 14 Chinese component suppliers.

Over the past few months, there has been a subtle shift in the Government of India’s stance towards Chinese investments. In 2020, as Sino-Indian border tensions escalated, investments from Chinese companies were stymied, foreign direct investment (FDI) rules tightened and prospective investors flatly told not to even apply to set up operations in the country.
Recently, responding to persistent demands from global and domestic mobile device and IT product players to help build a local supply chain ecosystem, the government has requested them to provide a list of their Chinese suppliers that would like to shift some capacity to India.
However, the preliminary screening and approval of the names comes with stiff riders. For one, it is meant only for Chinese companies that agree to set up a joint venture with domestic companies. The unwritten rule is that the latter should also have control, though many say that that could stifle choices sinc

Also Read

Winter session: Oppn demands discussion on border issue with China

Chinese chequers on the China border

FIH Men's Hockey World Cup 2023: Obstacles India will face on its home turf

One year since Tatas took over Air India, here's how the journey has been

Union Budget 2023: Experts don't expect surprises in social sector outlay

Go First to get Rs 210 crore under govt's credit line guarantee scheme: CEO

Adani confident of FPO sailing through; Sebi, other bodies probing sell-off

Mahanadi Coalfields sets up eco-park over closed underground mine in Odisha

Demand for optical fibre strong despite macro headwinds: Sterlite Tech

JSW Energy steps up focus on battery storage to address intermittency

First Published: Jan 29 2023 | 6:55 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to