If Chinese corporations combine with domestic enterprises to set up manufacturing models in the country, the government is open to allowing them entry into the high-tech electronics sector, according to officials. They continued by saying that the government is working with the industry to identify which Indian companies may need to form joint ventures in the electronics industry, not just with Chinese firms but also with firms from South Korea, Taiwan, and Vietnam.
Officials with knowledge of the key issues told ET that a three-way partnership plan can probably be approved if the Indian partner owns the majority of the company and the board of directors is still controlled by the local organization. However, they stressed that no specific conditions had been decided upon and that approvals may be granted if the JV led to further expansion of the nation’s environment for electronics production.
“We will evaluate the proposals based on their merit and how the country can benefit from them,” said an official on condition of anonymity. ” The press note 3 issued in April 2020 made it clear that inflows from countries sharing a land border with India have to come through the government route with necessary approvals.
Another official added that none of the suggestions for foreign investment from nearby countries could be approved since it would unintentionally hurt domestic businesses attempting to expand their electronics manufacturing. Nevertheless, he added, “proposals where high-end technology must be obtained from the adjacent nation through a joint venture with a local firm can be permitted to establish an ecosystem in India.”
According to the source, if India wants to create an environment for electronics manufacturing, Chinese companies should receive selected permissions. The federal government must promote joint ventures with businesses from Taiwan, Japan, South Korea, and several European nations in addition to China for the production of high-tech electronics.