With concerns about India’s electronics ambition, industry bodies urge fixed rules for Chinese joint ventures, arguing that clear caps and guidelines can unlock stalled investments and strengthen supply chains.
Electronics industry leaders have urged the central government to create a clear pathway for joint ventures with Chinese partners, while capping their equity at 26%. Industry bodies say this change is essential to scale advanced component manufacturing and draw predictable foreign investment into India’s electronics ecosystem.
Groups including the Confederation of Indian Industry (CII) and the India Electronics & Semiconductor Association (IESA) have advised the government to replace the current case-by-case approach with fixed guidelines. According to a report by The Economic Times, a transparent rulebook will unlock long-delayed foreign direct investment and help India build a more competitive supply chain faster.
Officials in the Ministry of Electronics and Information Technology (MeitY) confirmed that several foreign companies have submitted applications under the Electronic Component Manufacturing Scheme (ECMS).
A senior MeitY official said ministries are now weighing security concerns alongside strong market interest. According to an official who spoke to ET, there is significant curiosity about India’s electronics opportunity, but questions of trust and strategy must be settled at an inter-ministerial level.”
Under present rules, any investment from neighbouring countries requires security clearance from the home and external affairs ministries. As a result, no Chinese firm features among the 24 proposals cleared so far under the manufacturing scheme.
Industry appeals have intensified after Dixon Technologies received approval to form a joint venture with China’s Longcheer Intelligence. Dixon will hold 74% in the new entity, Dixtel Infocomm, while Longcheer will have 26%. Longcheer is known worldwide for its design and manufacturing of smartphones, tablets, IoT products, and innovative hardware.
Executives argue the Dixon example shows that controlled partnerships can coexist with national-security safeguards. They say predictable investment norms, coupled with the 26% limit, can draw critical technology into India without compromising oversight.
The Centre is expected to announce more approvals soon as applications are cleared in batches. Industry insiders say the government faces increasing pressure to balance strategic caution with India’s ambitions to become a global electronics hub.
