Indian electronics manufacturing firms are accelerating partnerships with Chinese suppliers ahead of the Rs 25,000 crore incentive scheme rollout. Companies like Micromax, Dixon, Zetwerk, and Syrma SGS are in talks for joint ventures as the Indian government signals a shift in policy. The IT Ministry has finalized the scheme, which is expected to gain Cabinet approval soon.
The Indian electronics manufacturing sector is preparing for a major expansion, as key players like Micromax, Dixon Technologies, Zetwerk, and Syrma SGS accelerate talks with Chinese suppliers to establish joint ventures. This strategic move comes ahead of the Indian government’s Rs 25,000 crore incentive scheme for electronics component manufacturing, expected to receive Cabinet approval soon. The initiative, spearheaded by the Ministry of Electronics and Information Technology (MeitY), aims to enhance domestic production and reduce import dependence.
Government’s Push for Electronics Manufacturing
The upcoming scheme focuses on critical components such as display modules, printed circuit board assemblies, camera modules, lithium cell enclosures, and other electronic essentials. The government’s latest policy consultations have indicated a willingness to allow joint ventures with Chinese firms, prompting Indian companies to fast-track their negotiations.
Micromax’s Decade-Long Plan
Micromax, headquartered in Gurugram, Haryana, has outlined a long-term strategy to strengthen India’s electronics ecosystem. The company has already partnered with Taiwan’s Phison Electronics to manufacture storage modules and is in the final stages of securing additional joint ventures for key components under the new scheme.
“We are focusing on suppliers that already serve global smartphone brands, including Chinese companies, to streamline approvals and ensure competitiveness,” a Micromax executive said.
Dixon Technologies Expands Component Production
Noida-based Dixon Technologies is set to begin producing display modules by the second half of 2025 through its joint venture with China’s HKC. The company is also exploring partnerships for camera modules, battery packs, and precision components.
“At Dixon, we are building a team dedicated to executing these projects. The component PLI scheme will strengthen our backward integration and unlock significant market potential,” said Atul Lall, Managing Director of Dixon Technologies.
Dixon is also considering setting up a $3 billion display fabrication plant in India, contingent on government subsidies under the upcoming ISM 2.0 policy.
Zetwerk and Syrma SGS Eye Strategic Collaborations
Bengaluru-based Zetwerk, valued at $2 billion, is seeking joint ventures and technology transfers with leading global component manufacturers. The company is also looking at acquisitions to expand its electronics component business.
“We are actively seeking partnerships with global firms that recognize the value of working with an established Indian manufacturing player,” said Josh Foulger, President of Zetwerk Electronics.
Chennai-based Syrma SGS Technology, which recently secured a contract from MSI to manufacture laptops in India, is open to global partnerships once the policy is officially announced.
“We will evaluate partnerships based on their technological strength and export potential,” said Jasbir Singh Gujral, Managing Director of Syrma SGS.
India’s Evolving Role in Global Electronics Supply Chains
India is positioning itself as a key player in global electronics supply chains, leveraging policy support and strategic international collaborations. As the Rs 25,000 crore incentive scheme moves toward approval, Indian EMS firms are racing to secure critical partnerships that will shape the industry for years to come.
