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Electronics Industry: China’s informal trade restrictions are having a serious impact on India’s electronics industry. Industry Organization India Cellular and Electronics Association Icea said in a letter to the Government of India that the sole purpose of this action of China is to disrupt India’s supply chain and weaken India’s rise as a global manufacturing center.
Effect of China’s sanctions
China has banned the export of rare soil minerals, capital equipment and other minerals, which play an important role in electronics construction. In addition, China has called back its employees and ordered some companies to stop operating in India. This has increased the cost of production in India’s electronics industry 3-4 times, as domestic production or imports from Japan and Korea are much expensive than China.
India’s export target in danger
India produced a smartphone worth $ 64 billion in 2025, out of which $ 24.1 billion was exported. India aims to export smartphones worth $ 32 billion by 2026, but due to these restrictions of China, it is becoming difficult to achieve this target. Members of Icea, including companies such as Apple, Google, Motorola, Foxconn, Vivo, Oppo, Lava, Dixon, Flexon and Tata Electronics, have expressed concern over it.
China is afraid of India’s progress
India’s smartphone exports were ranked 167th in 2015, but now India has become a major exporter. Apple has started moving its manufacturing plant from China to India, causing 20% of global iPhone production in India. All this has been possible due to India’s PLI (production-linked incentive) scheme, which Apple has taken advantage of through Foxconn and Tata Electronics. Therefore, China has been worried about this progress of India.
It is difficult to achieve a target of $ 155 billion by 2030
According to the ICEA, these steps of China are threatening India’s electronics manufacturing development. If this problem is not resolved, India’s stake in global exports may decrease, making it difficult to achieve a $ 155 billion manufacturing target by 2030.
Alternative Search for India
Due to China’s sanctions, India is now looking for other options for electronics production at low cost. However, in the midst of these challenges, the path ahead is not easy for India’s electronics industry.