India's Electronics Manufacturing Sector Employs 2.5 Million People, Minister Says.

Electronics manufacturing employs 2.5 million people in India, according to Minister Ashwini Vaishnaw. The sector is working to bring home the manufacturing of each component for mobile phones. Optiemus Infracom has inaugurated a facility in Noida to produce chemically treated tempered glass, with a capacity of 25 million units per annum and plans to scale up to 200 million units in phase 2. Corning will begin manufacturing cover glass for mobile phones at its Chennai plant by December.

India is planning to relax foreign direct investment (FDI) restrictions for Chinese investments in manufacturing, renewable energy, and auto components through the automatic route, according to sources close to the process. This move comes as part of a broader effort to revive capital inflows and restore supply chains, while also addressing geopolitical pressures [1].

The proposed changes, which are expected to be announced soon, would allow up to 20-25% Chinese investments in the specified sectors without requiring prior government approval. This shift is aimed at generating employment opportunities and encouraging technology transfer and job creation in India. However, strategic sectors such as defense, security, and telecom installations will remain off-limits [1].

The decision to ease FDI rules is seen as a pragmatic response to the increasing tariffs imposed by the United States on Indian goods. The US President Donald Trump's 50% tariffs on Indian exports have forced New Delhi to look for alternative markets and capital inflows. Additionally, India is considering joining the China-led Regional Comprehensive Economic Partnership (RCEP) to gain preferential access to a vast market bloc [1].

The electronics manufacturing sector in India employs approximately 2.5 million people, and the country is working to bring home the manufacturing of each component for mobile phones. Recent developments include Optiemus Infracom's inauguration of a facility in Noida to produce chemically treated tempered glass, with a capacity of 25 million units per annum, and plans to scale up to 200 million units in phase 2. Corning will begin manufacturing cover glass for mobile phones at its Chennai plant by December [2].

Bhagwati Products, the EMS arm of Micromax, is also expanding its manufacturing capabilities. The company plans to set up two new factories in Greater Noida, one of which will be the country's largest. These facilities will not only assemble smartphones, tablets, and IoT devices but also manufacture key electronics components such as displays and mechanics. Bhagwati is also applying for approvals for displays and mechanics categories under the government’s Electronics Component Manufacturing Scheme (ECMS) to access incentives for component-level production [2].

The aggressive expansion by Bhagwati is driven by rapid financial growth. The company is on track to achieve Rs 15,000 crore in revenue in FY26, more than doubling from Rs 6,200 crore in the last fiscal. The company has expanded its workforce from 1,000 to 10,200 employees in under a year and plans to invest $10 million in upskilling and hiring initiatives [2].

These developments underscore India's efforts to create a more industry-friendly ecosystem and boost FDI to $100 billion from about $80 billion currently. The relaxations in FDI rules are expected to enhance capital flow, technology transfer, and skilled manpower availability, thereby enhancing the efficiency and competitiveness of the electronics manufacturing sector in India [1].

References:
[1] https://www.livemint.com/industry/india-press-note-3-eases-china-fdi-11756467547288.html
[2] https://www.moneycontrol.com/technology/micromax-arm-bhagwati-setting-up-two-new-mega-factories-in-greater-noida-chinese-electronics-component-jvs-soon-rahul-sharma-article-13491466.html