China one move put India's Rs 2756892800000 at stake! this industry is in danger due to…
China has imposed several informal trade restrictions on India which is a threat to India's growing electronics sector. Industry leaders have expressed fears that this could negatively impact exports. India had set a target of $32 billion in smartphone exports by the end of FY2026, but China's tactics can derail this goal. In FY2025 alone, India produced electronic goods worth $64 billion.
ICEA, which counts Apple, Google, Motorola, Foxconn, Vivo, Oppo, Lava, Dixon, Flex, and Tata Electronics among its members, warned that these Chinese actions are increasing operational costs for companies and reducing confidence in India's electronics export potential. Why Does China Target India?
China's response was after India's rapid growth in electronics exports. Since 2020, India has increased its smartphone manufacturing. In FY2025, India produced $64 billion worth of products and exported $24.1 billion of that. In FY2015, India was at 167th in smartphone exports. Today, it's among the top exporters, with expectations of reaching $32 billion in exports by FY2026.
Another major trigger for China is Apple's shift in manufacturing from China to India. Earlier it was dependent on China for iPhone production but Apple has been moving operations to India since 2020 under the Production-Linked Incentive (PLI) scheme. Through partners like Foxconn and Tata Electronics, Apple now manufactures about 20% of its global iPhones in India which has made dragon angry. $155 Billion Target at Risk
China's recent moves can hamper India's long-term goal of achieving $155 billion in electronics manufacturing by 2030. ICEA warned that if the current disruptions are not resolved, India's share in global exports will reduce and will make it difficult for them to achieve their target.
China's actions are causing operational challenges, higher production costs, and disruption within India's electronics sector. For instance, producing certain components locally and sourcing them from Japan or South Korea is 3 to 4 times more expensive than importing from China.
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