20 Mar 2020 -
 General

India’s supply of Chinese electronic components may run out after ‘next few weeks’

indian supply chains

The Indian government is worried about over-dependence on Chinese electronics and will start looking to “broad base” suppliers.

China’s share in India’s import of electronics and IT may have dropped below 40%, from a former high of 55% between 2015-16, but the Indian Ministry of Electronics and Information Technology (MEITY) has suggested that the high dependency on Chinese import in the sector is still too high and the government should look at broad-basing sources.

The Ministry said that imports from China are largely in the nature of components that go into the manufacturing of sub-assemblies and final products and “there will be a likely impact on the supply of such components due to disruption in the supply chain”. It also said industry associations and major manufacturing companies that sufficient inventory is available for the “next few weeks”.

A parliamentary panel recommended the Ministry should take steps “to broad base the sources” of electronic hardware imports.

Steps are also being taken to explore sources of import of such components from other countries.

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