The Centre, along with the industry, is trying to identify up to 60 Indian companies that may want to get into electronics joint ventures not just with firms in China, but also from Taiwan, South Korea and Vietnam.
Citing officials with knowledge of the matter, the ET reported that the government, along with the industry, is trying to identify up to 60 Indian companies that may want to get into electronics joint ventures (JVs) not just with firms in China, but also from Taiwan, South Korea and Vietnam.
A JV proposal could get the green light if the Indian partner holds a majority stake in the company and controls the board. However, no conditions have been finalised, and approvals can be given if the JV provides further impetus to the country’s electronics manufacturing ecosystem.
“The press note 3 issued in April 2020 made it clear that inflows from countries sharing land border with India has to come through the government route with necessary approvals. We will analyse the proposals based on merit and how the country can benefit from them,” an official told the financial daily on condition of anonymity.
All the proposals about foreign inflows from neighbouring countries can’t be okayed as it would adversely impact domestic companies, which are trying to expand electronics manufacturing, the daily mentioned, citing another official.
He added: “But proposals where high-end technology has to be sourced from the neighbouring country through a joint venture with a local firm can be approved to develop an ecosystem in India.”
The Centre with the industry will soon start the process to find potential Indian entities that can enter into electronics manufacturing via JVs.
Pointing out that there are not many large companies in the country that are involved in large-scale electronics manufacturing, the official told the publication that the government has to “identify big firms that could be open to enter into the electronics segment if any foreign company is proposing to share technology.”