India's IT hardware suppliers are hoping that India let in more Chinese investment and workers to aid the local supply chain of IT hardware.
According to Financial Express, the IT supply chain relies on PCB, battery, power supply and other components from Chinese suppliers. If India continues to lock Chinese suppliers outside the door, local suppliers will face more hurdles in investing in India.
A total of 14 suppliers, including Taiwan-based Foxconn, will receive cash subsidies from the Indian government if they can reach production and sales targets in the next four years. The production-linked incentive scheme (PLI) for IT hardware amounts to INR73.5 billion (US$1 billion), covering production of notebook, tablet, AIO PC and servers.
Besides components, Chinese workers are equally essential in assisting construction of manufacturing plants.
In response to the requests from suppliers, India's Ministry of Electronics and Information Technology has promised to give the green light when necessary and that other ministries will follow the same guidelines.
India, as one of the WTO's first IT agreement signatories, imposes zero tariffs on IT imports. With restrictions on Chinese investment in place, it will be difficult for India's local IT manufacturing and sales to grow.