Kathmandu. China has imposed many informal trade sanctions on India. Which has put India’s electronic industry in danger.
India’s electronic industry has expressed concern over the issue and said it could affect the country’s exports. India is projected to achieve $32 billion worth of smartphone exports by the end of FY26. However, due to China’s action, this goal is not possible.
In addition, India produced $64 billion worth of products in FY25. In a letter to the Indian government, industry body India Cellular and Electronics Association (ICEA) said, “China’s sole purpose is to affect India’s supply chain and weaken India, which is emerging as a global manufacturing hub.” ’
Due to these restrictions of China, the cost of Indian companies is increasing. IceA members include companies such as Apple, Google, Motorola, Foxconn, Vivo, Oppo, Lava, Dixon, Flex and Tata Electronics.
Why is China imposing such sanctions on India? The answer to this question is India’s rapidly growing exports. Smartphone production in India has grown rapidly since 2020 and in FY25, India produced $64 billion worth of products. Of this, $24.1 billion was exported. In FY15, India was ranked 167th in smartphone exports. But, now it has become a major exporter.
In addition, exports are expected to reach $32 billion by 2026. China is also unhappy with Apple’s move.
Apple is moving its manufacturing plants from China to India and wants to export iPhones from here to the world. This has made China even more angry. Until about five years ago, Apple made all its iPhones in China. However, taking advantage of India’s PLIx plan to manufacture smartphones launched in 2020, the US company is rapidly ramping up production in India through Foxconn and Tata Electronics. That’s about 20 percent of global iPhone production.
China’s move is creating difficulties for India. “China’s latest move is putting India’s electronics manufacturing growth engine at risk,” icea said. If these solutions are not found, India’s share in global exports will decline significantly. This will not make it easy for India to achieve its $155 billion production target by 2030. ’
China’s restrictions are making operations difficult in India’s electronic industry. Which is affecting the scale and the cost of production is increasing. Because producing these devices locally or in collaboration with Japan or Korea is 3-4 times more expensive than Chinese imports. In such a situation, India is also looking for some other options. So that electronics can be produced at a low cost.
The biggest thing is about rare earth minerals. China has stopped the transportation of rare earths to India. Which plays a big role in the manufacture of electronics objects. Apart from this, China has also stopped the shipment of capital equipment and other minerals. China has also ordered employees to return to their country. So that technology transfer can be stopped.
Not only this, China has also ordered some of its companies to stop operating in India. Due to these actions of China, the threat to electronics production is increasing.
