India Opens Door to Chinese Investments In Electronics Amid Improved Ties

India is increasingly open to Chinese investments in electronics manufacturing as relations between the two nations improve, government sources report. This development aligns with India's aim to expand its manufacturing capabilities in an industry where China holds a 60% global production capacity.

A government insider remarked on the growing collaboration, pointing out the inevitability of working with China. Mentioned was the reopening of tourist visas and the recent visit by External Affairs Minister S Jaishankar to China as proof of easing tensions.

Indian electronics firm Dixon Technologies is actively seeking partnerships with several Chinese companies, with a joint venture involving Chinese smartphone maker Vivo underway. Government officials continue discussions with the Ministry of External Affairs to address concerns about these collaborations.

While challenges remain, particularly involving Chinese workers' recall from Foxconn and restrictions on rare earth magnets, government sources are confident of a minimal impact and are exploring alternatives like importing finished components or finding new suppliers.

Despite obstacles, the government remains optimistic about finding solutions to ease industry concerns, illustrating a pragmatic approach to fostering these international partnerships.

(With inputs from agencies.)