{"id":1294571,"date":"2025-05-05T08:40:18","date_gmt":"2025-05-05T03:10:18","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1294571"},"modified":"2025-05-05T08:40:51","modified_gmt":"2025-05-05T03:10:51","slug":"govt-allows-chinese-firms-to-claim-incentives-to-start-electronics-manufacturing-in-india","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/govt-allows-chinese-firms-to-claim-incentives-to-start-electronics-manufacturing-in-india\/","title":{"rendered":"Govt Allows Chinese Firms To Claim Incentives To Start Electronics Manufacturing In India"},"content":{"rendered":"\n

Under the Electronics Component Manufacturing Scheme, the Indian government is now allowing Chinese businesses to take advantage of Production-Linked Incentives (PLI).<\/p>\n\n\n\n

\"Govt<\/figure>\n\n\n\n

This is a major change in policy because, in the past, Chinese companies were mostly prohibited from taking part in government-sponsored incentive schemes in delicate industries like electronics.<\/p>\n\n\n\n

Chinese Companies Required To Establish JV With an Indian Partner To Be Eligible<\/strong><\/p>\n\n\n\n

As per reports, Chinese companies must first establish a joint venture (JV) with an Indian partner<\/a> in order to be eligible.<\/p>\n\n\n\n

The Indian partner must continue to hold the majority of the joint venture’s ownership and management.<\/p>\n\n\n\n

In particular, Chinese companies are not permitted to own more than 49% of the joint venture.<\/p>\n\n\n\n

To guarantee that decision-making power stays in Indian hands, the management control must be fully owned by the Indian company.<\/p>\n\n\n\n

Technology transfer from the Chinese company to the Indian JV is required by a significant provision in the joint venture agreement.<\/p>\n\n\n\n

This implies that as part of the partnership, Chinese companies must share their technological expertise with the Indian partner.<\/p>\n\n\n\n

Prior to its establishment, the joint venture must also receive approval for foreign direct investment (FDI).<\/p>\n\n\n\n

Electronics Component Manufacturing Scheme<\/strong><\/p>\n\n\n\n

Only two days have passed since Union IT Minister Ashwini Vaishnaw unveiled theElectronics Component Manufacturing Scheme’s official website and comprehensive guidelines.<\/p>\n\n\n\n

On April 8, the program was formally introduced with a \u20b922,919 crore budgetary allocation.<\/p>\n\n\n\n

It is part of the government’s larger initiative to increase domestic electronics production and lessen reliance on imports.<\/p>\n\n\n\n

Increased production of components like IT hardware, mobile parts, camera modules, display modules, and electro-mechanical devices is the goal of the Electronics Component Manufacturing Scheme (ECMS).<\/p>\n\n\n\n

It is anticipated that both Indian and foreign businesses will contribute a total of \u20b959,000 crore to the initiative.<\/p>\n\n\n\n

The program’s goal is to increase the electronics manufacturing ecosystem in India and generate 91,000 new jobs.<\/p>\n\n\n\n

The incentives provided differ based on the component type, capital expenditures, and turnover of the business.<\/p>\n\n\n\n

The plan also aims to make India a more important global center for electronics manufacturing.<\/p>\n\n\n\n

Indian businesses are becoming more interested in taking part in the program.<\/p>\n\n\n\n

One of the leading producers of electronics in India, Dixon Technologies, has declared its intention to invest in the manufacturing of electronic components.<\/p>\n\n\n\n

Additionally, the Tata Group has stated that it intends to invest \u20b92,000 crore under the scheme specifically for the manufacturing of components.<\/p>\n\n\n\n

By guaranteeing Indian control and requiring tech transfer, the policy may aid in striking a balance between international cooperation and domestic interests.<\/p>\n\n\n\n

It shows how the Indian government is taking a calculated approach to benefit from technology while upholding legal protections.<\/p>\n","protected":false},"excerpt":{"rendered":"

Under the Electronics Component Manufacturing Scheme, the Indian government is now allowing Chinese businesses to take advantage of Production-Linked Incentives (PLI). This is a major change in policy because, in the past, Chinese companies were mostly prohibited from taking part in government-sponsored incentive schemes in delicate industries like electronics. Chinese Companies Required To Establish JV […]<\/p>\n","protected":false},"author":25,"featured_media":1294585,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[2274,6567,7748],"class_list":["post-1294571","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-chinese","tag-electronics-manufacturing","tag-pli"],"acf":[],"yoast_head":"\nGovt Allows Chinese Firms To Claim Incentives To Start Electronics Manufacturing In India - Trak.in - Indian Business of Tech, Mobile & Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/govt-allows-chinese-firms-to-claim-incentives-to-start-electronics-manufacturing-in-india\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Govt Allows Chinese Firms To Claim Incentives To Start Electronics Manufacturing In India - Trak.in - Indian Business of Tech, Mobile & Startups\" \/>\n<meta property=\"og:description\" content=\"Under the Electronics Component Manufacturing Scheme, the Indian government is now allowing Chinese businesses to take advantage of Production-Linked Incentives (PLI). 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