India is the fastest growing big economy in the world and our neighbor China does not understand it. He is creating various obstacles to prevent India’s progress. Now India’s electronic industry is on its target. The industry is troubled by China’s informal trade restrictions. The industry says that this may reduce the competitiveness of the country. Also, the 32 billion dollar smartphone for this financial year can also be threatened on the export target.
Recently, the industry has written a letter to the government. This letter states that these actions of China are to weaken India’s supply chain. China wants to prevent India from becoming a global manufacturing center. These restrictions are delayed and the cost of manufacturers is increasing. The industry has urged the government to immediately lift China’s sanctions on capital equipment, minerals and skilled technical personnel. The industry says that these restrictions are being imposed without any formal notice. All this is being done through oral instructions.
Changes from China to India
This letter is written by India Cellular and Electronics Association (Icea). It states that if China’s actions continue, India’s export target will not be met. Icea includes companies such as Apple, Google, Motorola, Foxconn, Vivo, Oppo, Lava, Dixon, Flexon and Tata Electronics. All these companies make electronics. China has imposed these restrictions at a time when India is emerging as an alternative to electronics construction.
Especially the iPhone maker Apple has increased difficulties. About five years ago, Apple used to make all its iPhone in China. But taking advantage of the production linked incentive (PLI) scheme launched in 2020 for smartphone manufacture in India, Apple has quickly transferred production through its contract makers Foxconn and Tata Electronics to India. India now accounts for about 20% of the global iPhone production.
Export to america
Apple is sending the US iPhone from India. The trade war between the US and China and the incentives given by the Government of India are showing the effect. Other companies like Google and Motorola have also started exporting smartphones made in India to America. The Korean company Samsung also has good smartphone manufacturing capabilities in India, although Vietnam is still its main export center.
By 2020, smartphone manufacturing in India has increased. In FY 2025, the country produced equipment worth $ 64 billion, out of which it was exported to $ 24.1 billion. In comparison, domestic mobile phone production in FY 2019 was $ 26 billion. In FY 2015, the smartphone was ranked 167 in India’s exports. But now it has become the major export of the country. However, Icea says that these steps in China pose a threat to India’s electronics manufacturing development.
India’s goal
Icea said that if these obstacles are not removed, India could suffer losses. This may obstruct India’s intensive integration in the global value chains (GVC). India has recently announced an incentive scheme to promote local manufacturing of electronics parts. According to industry estimates, China currently produces most electronics parts globally. However, Icea says that India aims to increase the parts and sub-government manufacturing to $ 145–155 billion by 2030.
