India May Let Chinese Firms Enter Via JVs With Local Companies: Report

The government may allow Chinese companies to enter India’s high-tech electronics industry if they collaborate with local firms and establish production facilities in India.

According to a report by Economic Times, the proposal for the joint venture can be approved only if the Indian partner holds a majority of the company’s stock, retain control of the board and supports the growth of India’s electronic manufacturing industry. 

The ideas involving foreign inflows from nearby nations cannot be permitted since doing so would unintentionally harm local businesses that are attempting to expand their electronics production, the Economic Times said, citing sources close to the matter. 

“But proposals where high-end technology has to be sourced from the neighbouring country through a joint venture with a local firm can be approved to develop an ecosystem in India,” it added.

In addition to Chinese companies, the government and industry are also looking for Indian firms that would be interested in forming joint ventures in the electronics sector with businesses from South Korea, Taiwan, and Vietnam.

“We have to understand that currently there are not many big companies in India that are involved in large-scale electronics manufacturing. We have to identify big firms that could be open to enter into the electronics segment if any foreign company is proposing to share technology,” the report quoted a source close to the development as saying.