Although no bans have been announced yet, MeitY Secretary fears a possible obstruction by China on critical equipment shipments to Indian electronics manufacturers due to geopolitical tensions.
The Ministry of Electronics and Information Technology (MeitY) Secretary, S. Krishnan, recently revealed concerns that China may be obstructing the flow of essential capital equipment for Indian electronics manufacturers.
Speaking at the ‘AI Forward’ event on January 14, organised as a joint initiative by CNBC-TV18 and EY (Ernst & Young), Krishnan confirmed that feedback from industry stakeholders highlighted delays in the import of crucial machinery from China, affecting companies such as Foxconn.
According to CNBC-TV18, industry leaders have reported that equipment vital for electronics production has been held up at Chinese ports for extended periods, with no formal restrictions announced by the Chinese authorities yet. However, Krishnan suggested the possibility of Beijing’s informal intervention.
While these delays have yet to significantly impact current production, there are fears that continued disruptions could threaten future growth and expansion plans within India’s electronics sector.
This revelation comes amid growing geopolitical tensions between India and China, particularly following the 2020 Galwan clashes. India has since taken measures to curb Chinese economic influence, including banning Chinese apps, introducing a ‘trusted source’ policy for telecom equipment, and tightening foreign direct investment (FDI) scrutiny on Chinese investments. Additionally, reports suggest that India has restricted visas for Chinese officials.
The delays in crucial equipment deliveries coincide with Apple’s plans, via Foxconn, to begin manufacturing AirPods in India in 2025, which further underscores the critical nature of the equipment supply chain for the country’s electronics manufacturing sector.
