Per the recommendations from Building India’s Export Competitiveness in Electronics–2025-26: From Assembly to Manufacturing Hub: Call to Action Report from the think tank National Council of Applied Economic Research, the Government of India has taken action.
The report recommended that India soften rules on allowing investment from China if it wanted to become a $300 billion industry by 2026.
The government is open to allowing foreign electronics manufacturers, not just from China, but also from South Korea, Taiwan, Vietnam and countries from Europe enter India’s high-tech electronics sector should they set up manufacturing plants in partnerships with local companies.
A joint venture (JV) proposal may need to fulfill some conditions. One of them will be that the Indian partner holds a majority stake and controls the board, although no conditions have been finalized yet. Another condition may be that the foreign company interested in forming a JV with an Indian company should itself be engaged in hi-tech electronics manufacturing.
The government will identify 50 to 60 Indian companies that may want to get into joint ventures not just with companies in China, but also from South Korea, Taiwan and Vietnam and Europe.
Chinese firms have been struggling to do business in India as political tensions surged after a border clash in 2020.
Last updated: December 26th, 2025
