India Signals Openness to Chinese Investment in Electronics Manufacturing
India is signaling a greater openness to Chinese investment in its electronics manufacturing sector amid signs of improving bilateral relations. Government sources indicate that collaboration with China is increasingly seen as unavoidable, given that the country accounts for 60% of global electronics manufacturing capacity. The softening stance follows recent developments such as the re-opening of tourist visas and External Affairs Minister S. Jaishankar’s visit to China. Domestic firms like Dixon Technologies are actively pursuing joint ventures with Chinese companies, including an upcoming partnership with smartphone maker Vivo.
Government officials are taking a pragmatic approach to industry challenges involving Chinese operations, including the recall of Chinese workers from Foxconn and restrictions on rare earth magnets. Officials note that the broader electronics industry remains resilient and is exploring workarounds such as importing finished components or seeking alternative technologies and suppliers. For non-Indian companies, this signals potential opportunities to participate in India’s expanding electronics manufacturing ecosystem, particularly through partnerships that align with India’s push to reduce supply chain dependencies while leveraging China’s manufacturing expertise.
Editor’s Note: India is showing increased openness to Chinese investment in electronics manufacturing, driven by pragmatic industry needs and improving bilateral ties, including joint ventures like Dixon Technologies partnering with Vivo. Despite challenges such as worker recalls and material restrictions, officials emphasize resilience and strategic collaboration to strengthen India’s electronics ecosystem while reducing supply chain dependencies.
India Supports 18.8 Lakh EVs Under FAME Schemes, Boosts Charging Infrastructure
The Indian government has extended support to over 18.84 lakh electric vehicles (EVs) under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) schemes as of June 30, Minister of State for Steel and Heavy Industries Bhupathiraju Srinivasa Varma informed the Lok Sabha. Most of the assistance was provided under the FAME-II scheme, which covered 16,29,600 EVs, while the earlier FAME-I scheme (2015–2019) supported 2,55,305 vehicles. Additionally, ₹912.5 crore has been sanctioned for 9,332 public charging stations, with 8,885 already operational nationwide, including in tier 2 and tier 3 cities.
The FAME schemes aim to accelerate EV adoption by supporting demand creation, indigenous technology development, and local manufacturing of zero-emission vehicles (ZEVs). For non-Indian companies, this expanding EV ecosystem offers opportunities in vehicle components, battery technology, and charging infrastructure partnerships, as India positions itself as a rapidly growing market for sustainable mobility solutions.
Editor’s Note: India has supported over 18.84 lakh EVs under the FAME schemes, with FAME-II covering the majority and ₹912.5 crore sanctioned for 9,332 public charging stations, of which 8,885 are already operational. The initiatives aim to boost EV adoption, local manufacturing, and sustainable mobility, offering global firms opportunities in components, battery tech, and infrastructure partnerships.
TCS to Lay Off 12,000 Employees Globally Amid Workforce Realignment
Tata Consultancy Services (TCS), India’s largest IT services exporter, has announced that it will lay off around 12,000 employees, representing 2% of its global workforce, over the next three quarters of FY26. The layoffs will primarily affect middle and senior-level staff, including those on the bench for extended periods, as the company undertakes a workforce realignment to become a “future-ready organisation.” TCS CEO K Krithivasan clarified that the cuts are not driven by artificial intelligence replacing jobs, but rather by a skill mismatch, with senior staff often unable to adapt to entry-level or emerging skill requirements. Affected employees will receive notice-period pay, severance packages, insurance benefits, and outplacement assistance as part of the transition.
The move comes amid cautious hiring trends in the IT industry, tepid growth in the June quarter, and a push for agility in deploying talent to new technology areas. For non-Indian companies, the development signals both potential availability of skilled IT talent in the global market and TCS’s strategic pivot toward reskilling for digital and AI-driven projects, which could impact ongoing and future outsourcing partnerships.
Editor’s Note: TCS will lay off 12,000 employees globally, mainly mid- and senior-level staff, as part of a workforce realignment driven by skill mismatches rather than AI displacement, aiming to become a “future-ready organisation.” The move reflects broader industry trends of cautious hiring and digital reskilling, signaling potential shifts in outsourcing dynamics and availability of experienced IT talent.
Foxconn’s India-Made Apple AirPods Face Slowdown Amid China’s Rare Earth Export Delays
Production of Apple AirPods at Foxconn’s Telangana plant has faced temporary slowdowns due to a shortage of dysprosium, a rare earth metal used in permanent magnets for the earbuds. The facility, part of Foxconn Interconnect Technology near Hyderabad, began producing AirPods in April last year as part of Apple’s strategy to diversify manufacturing away from China. Foxconn has sought assistance from the Telangana government and the Department for Promotion of Industry and Internal Trade (DPIIT) to secure an End User Certificate (EUC) required by the Chinese government to approve dysprosium exports. While Foxconn maintains there is “no disruption,” industry sources confirm that production has experienced some delays, though the situation has since improved.
China’s tight control over rare earth exports, including dysprosium, highlights persistent vulnerabilities in Apple’s supply chain and India’s “Make in India” electronics push. For non-Indian companies, the episode underscores the geopolitical risks of relying on Chinese rare earths, creating opportunities for alternative suppliers, metal refiners, and logistics partners to support global electronics and EV manufacturing diversification strategies.
Editor’s Note: Foxconn’s AirPods production in Telangana faced temporary delays due to a shortage of dysprosium, a rare earth metal tightly controlled by China, prompting requests for export clearance support from Indian authorities. The episode highlights supply chain vulnerabilities in Apple’s China-plus-one strategy and opens opportunities for alternative suppliers and logistics partners in global electronics and EV manufacturing.
Samsung’s Smartphone Exports from India Fall 20% as PLI Incentives Expire
Samsung’s smartphone exports from India fell nearly 20% year-on-year in the first quarter of FY26, dropping to about $950 million from $1.17 billion a year earlier, according to The Economic Times. Industry executives attribute the decline to the South Korean company no longer qualifying for incentives under India’s production-linked incentive (PLI) scheme for smartphones since April. The lapse in PLI benefits has reportedly eroded Samsung’s export competitiveness, leading the company to reassess its strategy. Industry sources warn that Apple and Dixon Technologies could face similar challenges when the PLI window closes in March 2026, potentially impacting India’s ambition to become a major global smartphone manufacturing hub.
India’s PLI scheme has been a key driver of the country’s smartphone export growth, with shipments rising from $200 million in FY18 to a record $24.1 billion in FY25. Experts caution that without these incentives, India’s manufacturing costs are about 10% higher than Vietnam and 15% higher than China, risking a slowdown in foreign investment and export momentum. For non-Indian companies, this highlights both the opportunities and vulnerabilities of leveraging India as a China+1 manufacturing base, especially as trade policies, cost structures, and government incentives increasingly shape global supply chain decisions.
Editor’s Note: Samsung’s smartphone exports from India dropped 20% in Q1 FY26 after losing eligibility for PLI incentives, prompting a strategic reassessment and raising concerns for other firms like Apple and Dixon Technologies. The development underscores India’s reliance on PLI schemes to stay competitive in global manufacturing, with higher costs threatening its position as a China+1 export hub.
India’s Edge Data Centre Capacity Set to Triple by 2027 Amid Rising Tech Demand
India’s edge data centre capacity is projected to surge from 60–70 MW in 2024 to 200–210 MW by 2027, a threefold increase driven by the adoption of emerging technologies, according to rating agency ICRA. Edge data centres are smaller, decentralised facilities located near end users, enabling low-latency, real-time data processing compared to large, centralised traditional data centres. Currently, edge facilities represent only 5% of India’s total data centre capacity — and as low as 1% if captive operations are excluded. ICRA’s Anupama Reddy noted that in India, traditional and edge data centres are expected to follow a hub-and-spoke model, supporting sectors like healthcare, banking, defence, and manufacturing as the country’s cloud and AI ecosystem expands.
While the outlook is promising, challenges remain, including higher rental costs, security risks from remote locations, interoperability with traditional centres, and a shortage of skilled manpower in tier II and III cities. Global players may find opportunities as India’s edge market develops, particularly in cloud, connectivity, and security solutions, since local operators like RailTel and telecom companies are expected to lead this expansion. For non-Indian companies, the growth trajectory signals potential partnerships or investments in edge infrastructure to tap into India’s fast-growing digital and AI-driven economy.
Editor’s Note: India’s edge data centre capacity is set to triple by 2027, rising to 200–210 MW as demand for low-latency, real-time processing grows across sectors like healthcare, banking, and manufacturing. Despite challenges like high costs and skill shortages, the expansion offers global firms opportunities in cloud, connectivity, and security partnerships within India’s evolving digital and AI ecosystem.