China’s New Export Controls Threaten India’s $120 Billion Electronics Manufacturing Push
मुख्य बातें
- •China has imposed new export controls on gallium and germanium compounds starting April 1, affecting global electronics supply chains.
- •India aims to produce $300 billion worth of electronics by 2026, but relies on China for over 80% of gallium and 60% of germanium supplies.
- •The Production-Linked Incentive scheme offers up to 6% subsidies, but manufacturers face delays due to supply chain disruptions from China’s new rules.
- •India’s electronics exports rose to $25 billion in FY24, yet 70% of components are still imported, increasing vulnerability to external trade policies.
India’s plan to become a global electronics manufacturing hub is facing fresh headwinds after China imposed stricter export controls on key components. The move comes just as New Delhi is rolling out sops worth billions of dollars to attract global manufacturers and meet its ambitious $300 billion electronics production target by 2026.
The new Chinese regulations, which took effect on April 1, require exporters to obtain special licenses for certain gallium and germanium-based compounds widely used in semiconductors, LEDs, and high-performance electronics. Industry analysts warn that disruptions in the supply of these materials could stall India’s push to assemble everything from smartphones to electric vehicles locally. “China controls over 80% of the global supply of gallium and over 60% of germanium,” said an unnamed senior executive at a Mumbai-based electronics contract manufacturer. “Any restriction will directly impact production timelines and costs.”
