CNBC-TV18 learns from sources that the government is concerned about countries like Vietnam benefiting from China +1 strategy and is now mulling a recalibration of strategy.
The Centre is reviewing its stance on Chinese investments to ensure global companies relocate to India. Many global manufacturers want to make in India but want to continue JVs with existing Chinese partners. So say Apple for one, is keen on making iPads in India but wants China's BYD — Apple's main iPad assembler to be allowed to ink a JV with an Indian entity.
The government may consider allowing BYD to ink a joint venture with an Indian company. Investments and joint ventures with Chinese companies have seen a slowdown since India imposed restrictions in April 2020.
CNBC-TV18 learns that government may consider allowing Chinese investments and joint ventures for intermediate-stage products where India does not currently have technological expertise. Recently 13 to 14 JVs with Chinese companies were considered for mobile phone and electronics manufacturing. This comes against the backdrop of Vietnam emerging as a top alternative to China in high-tech electronics.
Vietnam is already Apple's sixth biggest supplier after China, Japan, US, Taiwan and South Korea. Google is considering shifting production of Pixel 7 from China to Vietnam and Samsung recently said it will be investing $3.3 billion in semiconductor manufacturing in Vietnam.
Looking at recent trends, India does not want to lose out on companies seeking alternative manufacturing destinations.
First Published: Dec 30, 2022 1:46 PM IST