Overview

• The government on July 25 cleared a joint venture between Dixon Technologies and China’s Longcheer under its $24 billion component manufacturing scheme.
• NITI Aayog has proposed lifting the equity cap for Chinese investors to 24 percent in Indian electronics firms without mandatory security clearances.
• Roughly six to seven additional Chinese-Indian joint ventures, including proposals from Bhagwati (Micromax) and Karbonn, are in advanced stages of review.
• India is pursuing alternative sourcing measures—importing finished components and diversifying suppliers—to counter informal Chinese curbs on rare earth exports and technical personnel.
• Automotive and electric vehicle manufacturers have appealed for government support to prevent shortages of critical electronic parts.