As the deadline for India's electronics component manufacturing scheme approaches, leading domestic manufacturers such as Dixon Technologies, Amber Enterprises, PG Electroplast, Epack Durable, Bhagwati Products (Micromax), and Optiemus are finalising joint ventures (JVs) with South Korean, Taiwanese, and Japanese partners.

The shift is driven by India's stringent stance on Chinese investments, especially under the Press Note 3 norms introduced after the 2020 border clashes with China, which require multi-ministerial approval for any Chinese FDI. The move also comes amid trade tensions, including China’s recent curbs on rare earth magnet exports to India.

Indian companies are seeking alternative sources for technology and capital, with several considering technical alliances or minority stake deals instead of full-scale Chinese partnerships. Amber Enterprises CEO Jasbir Singh confirmed, “Amber will put in Rs 4,000 crore application under component manufacturing scheme which will be invested through the tenure of the scheme.” Also, smartphone contract manufacturer, Dixon Technologies is in the final stages of negotiating partnership agreements with South Korean and Taiwanese companies, according to Managing Director Atul Lall.