As the July-end deadline approaches for submitting applications under the government’s Rs 229.19 billion electronics component manufacturing scheme, Indian contract manufacturers are reportedly firming up joint ventures with South Korean, Taiwanese, and Japanese firms, moving away from their earlier dependence on Chinese partners.
Dixon Technologies, Amber Enterprises, PG Electroplast, Epack Durable, Optiemus, and Bhagwati Products (Micromax) are among the homegrown players preparing proposals in collaboration with global partners, driven in part by India’s strict curbs on Chinese FDI under Press Note 3 and ongoing bilateral trade frictions, such as China’s rare earth magnet export restrictions.
Amber Enterprises plans to submit a Rs 40 billion proposal, including a Rs 30 billion JV with Korea Circuit for semiconductor substrates and high-density interfaces, and a Rs 10 billion plan for printed circuit board manufacturing. Similarly, Dixon Technologies and Optiemus are finalising JVs with South Korean and Taiwanese firms, while Bhagwati Products is exploring Korean, Taiwanese, and Chinese equity partnerships, contingent on regulatory approvals. Meanwhile, PG Electroplast intends to submit four to five proposals with non-Chinese firms, and Epack Durable will file two applications worth Rs 3 billion, focusing on sound components, printed circuit board assembly (PCBA), and display units.
The scheme, spread over six years (including a one-year gestation period), aims to boost domestic value addition from the current 20 per cent, attract investments of Rs 593.5 billion, generate Rs 4.56 trillion worth of production, and create over 91,000 direct jobs. Over 100 applications have already been submitted as the sector aligns itself with India’s broader strategy to reduce dependence on Chinese imports and integrate more deeply with global value chains.
