ICEA Flags Urgent Need for Govt Action as China Curbs Hit Electronics Exports
India’s electronics and smartphone manufacturers are sounding the alarm over informal but targeted restrictions imposed by China, which they say are threatening the country’s $32 billion export-focused electronics manufacturing plans. The Indian Cellular and Electronics Association (ICEA), representing key players like Apple, Foxconn, Lava, Dixon, Tata Electronics, Oppo, Vivo, and Xiaomi, has written to the government highlighting these growing challenges.
In a letter to Union Minister Ashwini Vaishnaw, ICEA Chairman Pankaj Mohindroo warned that Chinese authorities are enforcing unofficial curbs on three fronts—capital equipment imports, supply of critical minerals, and the entry of skilled Chinese personnel. These are crucial for maintaining India’s competitiveness and momentum under the Production Linked Incentive (PLI) scheme. According to ICEA, these actions are being carried out without formal orders, via verbal instructions to Chinese customs officials, effectively slowing down or blocking essential exports to India.
Mohindroo stated that if these disruptions continue, they could derail India’s integration into global value chains, delay production, inflate manufacturing costs, and restrict new product development. The association highlighted that companies are already facing serious operational hurdles. For example, Apple partner Foxconn recently had to send over 300 Chinese engineers back home from its Indian facilities, potentially affecting iPhone production. Apple is now seeking alternatives by bringing in talent from other countries.
China remains a dominant global supplier of precision tools and machinery essential for electronics production. ICEA noted that restrictions on these tools have begun to mirror those that earlier impacted solar and heavy machinery sectors. Replacing Chinese machinery with alternatives from Japan or Korea could cost three to four times more, making production in India unviable at current scales.
Additionally, the unavailability of Chinese technical experts—due to travel restrictions and mid-assignment recalls—is hindering tech transfers, skill development, and scaling of operations. Chinese authorities have reportedly asked certain capital equipment firms to shut their India operations and remove Indian professionals, deepening the crisis.
ICEA also pointed out that China’s control over rare earth elements and critical minerals, vital for EVs, smartphones, and other electronics, adds further risk. Supply constraints and price manipulation are exacerbating India’s cost disadvantage in manufacturing.
In FY25, India’s smartphone production surged to $64 billion, with $24.1 billion coming from exports. This rapid growth has positioned smartphones as the country’s third-largest export. ICEA is now urging immediate government intervention to address these challenges, protect industry gains, and ensure that India continues on its path to becoming a global electronics hub.
