Companies Back-up Chinese Manufacturers

- Advertisement -

To make the market roots deeper and increase competitiveness, multiple electronics manufacturers have requested the government to allow Chinese small-scale component makers to establish shops in India. This move comes after the request for clarification on the foreign direct investment (FDI) policy as it applies to countries which have a land border with India and its neighbours.

The India Cellular and Electronics Association, also known as ICEA also pursued the immediate payment of all inducements and remaining dues owed to the industry under various programs, which also include the production-linked incentive (PLI) scheme and other export advancement plans, on a June 23 letter to the Prime Minister Modi’s Office.

“A clarity on FDI Policy needs to be defined in view of the press note to facilitate shifting of companies which will help create the ecosystem, investments, create jobs, facilitate skill improvement, and help develop the overall sector,” ICEA Chairman Pankaj Mohindroo said in the letter. He also added that the lack of transparency on the policy for facilitating the shifting of global value chains (GVCs) with their ecosystems to India can damage the processes and mechanisms of companies looking to make the move.

- Advertisement -

India recently amended the foreign direct investment policy for countries sharing land borders on April 17, 2020, through the Press Note 3 to only authorise influxes through the administration route with the necessary clearances. The amendment took place amid the intensified Sino-Indian tensions and sought at dissuading investments from organisations based in China.

“Given the massive dependency on China for finished products, especially IT hardware, it is impossible to create a relocation pathway to deepen GVCs in India, without tier 2 and 3 manufacturers for finished products, sub-assemblies and components from China,” ICEA said.

Recently, Chinese firms in India have been under the scanner of the government and ED, namely Xiaomi and Vivo.


 

- Advertisement -

Most Popular Articles

Nishchay Pandey
Nishchay Pandey
Bioengineer with a knack for writing, I love IoT, Open-source and creativity.

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

Report Suggests India’s EV Sales Will Surge, Rising 66% In 2024

0
In 2023, sales of electric vehicles (EVs) in India almost doubled due to increased consumer interest, government actions, better infrastructure, and climate change worries....

Ascend Performance Materials: Pioneering Innovation in the Electronics Sector

0
Bridging material advancements in plastics and technological progress, Ascend leads with customised solutions for a safer, reliable and greener tomorrow. Q. How would you explain...

DigiKey Expands Portfolio With 3PEAK

0
This collaboration adds amplifiers, interface components, data converters, and more, catering to industries such as communication, industrial, medical, and automotive.  In a strategic move aimed...

Buzz

Microsoft’s $1.5B AI Venture In UAE Stirs Global Interest

0
New partnership with G42 promises transformative AI advancements in emerging markets, impacting tech and geopolitics. Microsoft has announced a strategic $1.5 billion investment in UAE-based...

Tesla Power, E-Ashwa To Introduce India’s First EV With Fire Safety Tech

0
The partnership also expands to include the provision of after-sales support for electric vehicle customers by establishing a comprehensive network of sales and service...

Elektrobit Introduces EB zoneo GatewayCore Featuring Infineon’s AURIX TC4x

0
The EB zoneo GatewayCore is designed to connect hardware-dependent accelerators with the Classic AUTOSAR framework, providing adaptable support for intricate routing scenarios. Elektrobit, a premier...

Important Sectors

Tesla Power, E-Ashwa To Introduce India’s First EV With Fire Safety Tech

0
The partnership also expands to include the provision of after-sales support for electric vehicle customers by establishing a comprehensive network of sales and service...

Elektrobit Introduces EB zoneo GatewayCore Featuring Infineon’s AURIX TC4x

0
The EB zoneo GatewayCore is designed to connect hardware-dependent accelerators with the Classic AUTOSAR framework, providing adaptable support for intricate routing scenarios. Elektrobit, a premier...

Raptee’s Cell Chemistry Extends Battery Life, Says Dinesh Arjun

0
The Co-founder and CEO of Raptee disclosed that the company is currently sourcing its cells from a variety of countries. Dinesh Arjun, the Co-founder and...

AVL And Red Bull To Create High-Density Fuel Cell Technology

0
The advanced technology, featuring ultra-high power density and a lightweight design, is said to be two-thirds lighter than traditional fuel cell systems. This partnership...

Raptee Debuts First EV Motorcycle From Chennai Plant

0
Raptee Energy is gearing up for the commercial launch of its motorcycles by priming its assembly line, preparing the initial batch for testing, and...

Manufacturing

AVL And Red Bull To Create High-Density Fuel Cell Technology

0
The advanced technology, featuring ultra-high power density and a lightweight design, is said to be two-thirds lighter than traditional fuel cell systems. This partnership...

JJG Aero Secures $12 Million Investment From CX Partners

0
The Bengaluru-based aerospace components manufacturer intends to use the funds primarily to enhance vertical integration, increase production capacity at the new site, and support...

Tata Electronics Finalizes Semiconductor Agreement With Tesla

0
Ashok Chandak, the head of the India Electronics and Semiconductor Association (IESA), highlighted that Tesla’s initiative to establish a network of domestic suppliers for...

Sterling Tools Targets 40% of Sales from EV Business by FY25

0
This increase is anticipated to come from the EV business segment, which is integral to the company's strategy to diversify its operations. With a certain...

Lanxess, IBU-tec Partner To Develop Iron Oxides For EV Batteries

0
The collaboration focuses on enhancing the performance of LFP (lithium iron phosphate) cathode materials and reducing batteries' carbon footprint. Utilizing local raw materials, the...