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Time of India
6 days ago
- Business
- Time of India
Electronics exports: India challenges China's dominance, eyes leadership in global manufacturing; mobile-led boom drives value, jobs
This is an AI-generate dimage, used for represesentational purposes only. India is all set to emerge as a key player in global electronics manufacturing, driven by strategic integration into global value chains (GVCs) and a sharp shift towards export-oriented policies. A report by the Centre for Development Studies (CDS) has highlighted that India, through "backwards-linked" GVC participation, has the potential to rival established players like China and Vietnam in the electronics manufacturing space. According to the CDS study, the Production Linked Incentive (PLI) Scheme launched in 2020 played a pivotal role in India's transformation from an import-heavy mobile phone market to a major production and export hub. Mobile phone exports, which stood at just $0.2 billion in 2017-18, skyrocketed to $24.1 billion in 2024-25, marking a staggering 11,950 per cent growth. The report also pointed to a significant rise in Domestic Value Addition (DVA) within mobile manufacturing. Total DVA touched 23 per cent in 2022-23, with over $10 billion generated domestically. Direct DVA rose from $1.2 billion to $4.6 billion, a 283 per cent jump, while indirect DVA, from domestic suppliers, grew 604 per cent to $3.3 billion. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Clearance Sale: Exclusive handcrafted handbags - now 70% off Handmakers Report Read Now Undo Job creation has expanded alongside this growth. Citing Annual Survey of Industries (ASI) data, the report said the mobile phone sector supported over 17 lakh jobs in 2022-23. Export-linked employment, in particular, rose more than 33 times, with notable improvements in wages. 'With the mobile phone manufacturing providing a blueprint for growth, India can replicate similar strategies across the electronics sector to position the country as a global manufacturing leader,' said CDS Director C Veeramani, as quoted by news agency ANI. He added that the broader electronics sector offers "enormous opportunities" waiting to be tapped. Pankaj Mohindroo, chairman of the India Cellular & Electronics Association (ICEA), echoed the findings, stating, 'This study reaffirms what ICEA has consistently advocated — that strategic integration into global value chains is critical for scaling exports, enhancing domestic value addition, and creating jobs.' The report recommended that policymakers continue to focus on an outward-oriented strategy, suggesting liberalised trade policies, correction of tariffs, and ecosystem development including investment in logistics. It also urged the government to prioritise scale before enforcing early-stage localisation to ensure competitiveness. India's electronics exports rose 47 per cent to $12.41 billion during the April-June quarter of FY26, as per commerce ministry data. The US, UAE, and China were the top destinations, with the US accounting for over 60 per cent of shipments. Officials noted that this growing geographical spread reflects India's increasing integration into global supply chains and its rise as a credible manufacturing alternative in Asia. The CDS study underlines this momentum, calling for continued reforms to cement India's role as a central node in global electronics manufacturing and to unlock growth across other sectors. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
India.com
21-07-2025
- Business
- India.com
Big update on Rare Earth magnets as China makes big move, not good news for US and India due to....
China-US file image Big update on Rare Earth magnets: In a significant development impacting manufacturing activity across the globe, China is reportedly using export controls on rare-earth minerals as a strategic tool. Causing global supply chain disruptions and economic uncertainty through its unofficial export bans and tactical resumptions, Xi Jinping's China is trying to assert its economic power. Experts have noted that China had earlier stopped the exports of rare-earth magnet which are important for several industries like electronics, electric vehicles, wind turbines and defense, which led to its massive shortage in countries like USA and India. How is China using rare-earth minerals as strategic tool? However, after some months in June, China relaxed some of these unofficial export restrictions, resulting in an increase in supply of the critical minerals across the world. Data showed that a huge rise of 158% month-on-month in the shipments was seen after China started the exports. Informal trade restrictions imposed by China on capital equipment, critical minerals, and skilled technical personnel, can adversely impact India's electronics manufacturing ecosystem and constrain India's deeper integration into global value chains (GVCs), leading industry body India Cellular and Electronics Association (ICEA) has said. India's electronics and mobile manufacturing sector has seen a remarkable growth over the past decade, driven by forward-looking policy interventions and private sector investments and the shift of GVCs to India. How China dominates global source of high-precision tools? China remains the dominant global source of high-precision tools and specialised machinery – an outcome of three decades of industrial clustering and deep GVC integration. 'For the electronics sector, including smartphones, this has created a high dependency on China for capital equipment,' the ICEA said in its letter. Recent curbs by China on rare earth materials are also risking input shortages for smartphone manufacturers operating in India. (With inputs from agencies)
Time of India
19-07-2025
- Business
- Time of India
Government gets 'SOS call' from trade body on China's 'Leave India' order to engineers and technicians, what the letter says
India's electronics industry has reportedly raised a red flag over what it describes as "informal trade restrictions" imposed by China. The industry warns that the covert measures being used by China could cripple India's global competitiveness and jeopardize its ambitious $32 billion smartphone export target for the current fiscal year. According to a report in Economic Times, industry views China's actions as a deliberate attempt to undermine India's emergence as a global manufacturing powerhouse. In a recent letter to the government, the India Cellular and Electronics Association (ICEA), the industry body representing major players like Apple, Google, Motorola, Foxconn, Vivo, Oppo, Lava, Dixon, Flex, and Tata Electronics, wrote that China's actions are "solely aimed at crippling India's supply chains and undermining its rise as a global manufacturing hub." The curbs, the ICEA highlighted, are already causing significant delays and inflating costs for manufacturers. The SOS letter has urged the Indian government to urgently intervene regarding China's latest controls on capital equipment, critical minerals, and the movement of skilled technical personnel. Crucially, the ICEA emphasized that these restrictions are being enforced in a "planned, sequential manner without any formal notifications, and only through verbal instructions." "While domestic production remains relatively insulated for now, export-linked manufacturing to the tune of $24 billion in FY25, projected to cross $32 billion in FY26 in smartphones has now come under serious risk," the ICEA warned in its letter. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You To Read in 2025 Blinkist: Warren Buffett's Reading List Undo China's 'Leave India' Diktat to Chinese engineers Recently, there have been reports that China asked all Chinese engineers and technicians at Foxconn plants in India to leave the country. According to a recent Bloomberg report, Apple's largest iPhone manufacturer Foxconn, has recalled over 300 Chinese engineers and technicians from its Indian production facilities, creating significant operational challenges as the iPhone-maker prepares for iPhone 17 manufacturing. The mass withdrawal, which began two months ago, reportedly leaves only Taiwanese support staff at Foxconn's India plants. A large part of mobile phone manufacturing equipment is imported from China, and Chinese professionals have the expertise to operate it. Government on Chinese engineers leaving iPhone maker Foxconn's plant According to a report by the news agency PTI, the government has stated that it's monitoring production targets and believes Apple has alternatives to manage any related issues. In a statement, a government source told the news agency: "Government is monitoring the situation. Apple has alternatives and they should be able to look at ways to handle this. Issue is primarily between Apple and Foxconn. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
New Indian Express
18-07-2025
- Business
- New Indian Express
Chinese trade curbs threatening $32 billion export ambition, warns India's electronics sector
NEW DELHI: India's smartphone and electronics industry has raised serious concerns over what it describes as informal but targeted trade restrictions imposed by China. The India Cellular and Electronics Association (ICEA), in a letter to the government, sought swift policy measures to address these unofficial restrictions, which could derail the country's $32 billion export-driven manufacturing ambitions. As per the ICEA letter, India's electronics manufacturing sector remains heavily reliant on China for high-precision tools, specialized machinery, and critical components. Over the past eight months, manufacturers have been facing informal export restrictions that are nearing the level of an outright ban. Shipments of essential equipment are either being withheld at the origin or delayed at Chinese ports, leading to operational inefficiencies, production delays and increased costs. Sourcing alternatives from Japan and South Korea is reported to be three to four times more expensive.
India.com
18-07-2025
- Business
- India.com
China one move put India's Rs 2756892800000 at stake! this industry is in danger due to…
China's latest actions are raising serious concerns for India's electronics industry. According to a letter from the industry body India Cellular and Electronics Association (ICEA) to the Indian government, China's measures can disrupt India's supply chain and weaken its role as a global manufacturing hub. Informal Trade Restrictions By China 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.
