India's Electronics Makers Pivot from China, Forging New Global Alliances

Indian electronics manufacturers are rapidly shifting their focus away from China, choosing instead to team up with companies from South Korea, Taiwan, and Japan, or even pursuing independent projects. This big move comes as unpredictable political ties between New Delhi and Beijing cause frustrating delays in getting business approvals for partnerships. Leading the charge, firms like Dixon Technologies are forming joint ventures with Taiwan Inventec Corp for laptops and servers, and with Gemtek Technology for telecom equipment, while Syrma SGS Technology is collaborating with Japan Kaga Electronics. This strategic change is a direct result of Prime Minister Narendra Modi's government pushing for 'self-reliance' in electronics manufacturing, a goal that has gained speed over the past few years to lessen India's dependence on Chinese sourcing and technology. Government initiatives like the Production Linked Incentive (PLI) scheme, which has already disbursed over Rs 15,554 crore for the electronics sector, and the ambitious India Semiconductor Mission, supporting 12 new projects worth Rs 1.64 lakh crore, are fueling this diversification. This push is also critical given China's recent moves, like the new Regulations on Industrial and Supply Chain Security introduced in April, which allow Beijing to restrict exports of vital materials and tech, raising concerns about India's continued reliance on Chinese components. Major global players like Foxconn are significantly increasing their iPhone manufacturing and investments in India, while LG Electronics and Samsung are also expanding their local production and even relocating units from China, aiming to turn India into a global manufacturing and export hub. India's electronics exports hit $47 billion in FY2026, with the government eyeing $120 billion by the end of 2026, but overcoming the 'assembly trap' and truly reducing dependence on Chinese inputs for critical components remains a key challenge for this ambitious growth.