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Indian Electronics Makers Lock In Non-Chinese Partnerships Ahead of Scheme Deadline

Major Indian contract manufacturers are finalizing joint ventures with partners in South Korea, Taiwan, Japan to secure government subsidies under the electronics component manufacturing scheme.

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INDIA vs CHINA

Overview

  • The scheme’s July deadline has prompted leading firms such as Dixon Technologies, Amber Enterprises and PG Electroplast to finalize partnerships with South Korean, Taiwanese and Japanese companies.
  • Press Note 3’s requirement for multi-ministerial clearance of Chinese investment has driven manufacturers to avoid potential regulatory delays in their subsidy timelines.
  • China’s restrictions on rare earth magnet exports have heightened urgency among Indian producers to diversify critical component supply chains away from the country.
  • Official projections expect the six-year scheme to attract ₹59,350 crore in investments, generate ₹4,56,500 crore in output and create 91,600 direct jobs.
  • Any proposed Chinese collaboration is now undergoing strict regulatory review before final approval.