Explained: Why Chinese electronics companies are getting a break in India

A small policy relaxation outside the rubric of Press Note 3 is designed to help global and domestic electronics manufacturing build a local supply chain ecosystem

Over the past few months, there has been a subtle shift in the Government of India’s stance towards Chinese investments. In 2020, as Sino-Indian border tensions escalated, investments from Chinese companies were stymied, foreign direct investment (FDI) rules tightened and prospective investors flatly told not to even apply to set up operations in the country.

Recently, responding to persistent demands from global and domestic mobile device and IT product players to help build a local supply chain ecosystem, the government has requested them to provide a list of their Chinese suppliers that would like to shift some capacity to India.