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China's Stealth Curbs Jeopardize India's $32B Smartphone Export Goal
18 Jul
Summary
- China imposes informal trade restrictions on India's electronics industry
- Curbs threaten $32 billion smartphone export target for current fiscal year
- Disruptions lead to higher costs and operational inefficiencies for manufacturers
India's electronics industry is sounding the alarm over China's informal trade restrictions, which they say could dent the country's competitiveness and jeopardize its $32 billion smartphone export target for the current fiscal year.
In a recent letter to the government, the industry body India Cellular and Electronics Association (ICEA) stated that China's actions are deliberately aimed at crippling India's supply chains and undermining its rise as a global manufacturing hub. The curbs, which are being enforced through verbal instructions without any formal notifications, are triggering delays and inflating costs for manufacturers.
The industry has called on the Indian government to urgently address these issues, emphasizing that the export-linked smartphone manufacturing, projected to cross $32 billion in the next fiscal year, is now at serious risk. China's restrictive measures come as India has emerged as an alternative global hub for electronics production, especially for Apple's iPhone.
If left unaddressed, these disruptions could reverse India's recent gains in the electronics sector and constrain the country's deeper integration into global value chains, the ICEA warned.
