Govt Receives SOS on China's Exit Notice to Technicians in India

India's electronics industry has threatened on what it calls "informal trade restrictions" by China, claiming such sudden actions may destabilize supply chains and put at risk the country's $32 billion smartphone export goal for FY26.

In a letter to the government, India Cellular and Electronics Association (ICEA)—the voice of major industry leaders such as Apple, Google, Motorola, Foxconn, Vivo, Oppo, Lava, Dixon, Flex, and Tata Electronics declared that China's move seems to be an apparent attempt to burst the bubble of India emerging as a global electronics manufacturing hub.

The ICEA pointed out that such restrictions, from capital equipment to critical minerals and the transit of skilled manpower, are ordered without notice by notification but only by verbal command. The letter characterized the steps as "planned and sequential," resulting in undue delays and added expenses for manufacturers, particularly those involved in export-oriented manufacturing.

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Export production, worth $24 billion in FY25 and more than $32 billion in FY26, is currently in acute danger, ICEA cautioned. Domestic manufacturing continues to hold steady at the moment, yet the current disruptions have the potential to cascade onto international value chains.

Additional pressure comes after more than 300 Chinese engineers and technicians employed in Indian Foxconn facilities have been reportedly recalled by China in recent months, according to a Bloomberg report. The action leaves operational challenges, especially with Apple keen on producing the iPhone 17 in India.

The government officials have established that the incident has happened, and production levels are being tracked and other efforts are being put in place to handle the interruption, which is mostly considered an internal issue between Foxconn and Apple.