Impact of Chinese Electronics on Indian Manufacturing Sector- An Empirical Evidence

Abstract

This study examines both the challenges and opportunities posed by Chinese electronics, highlighting the need for balanced policies to promote sustainable growth in India’s manufacturing sector. The rapid influx of Chinese electronics into the Indian market has significantly influenced the growth and structure of the Indian manufacturing sector. Chinese electronic products, known for their cost-effectiveness, technological advancement, and large-scale production, have captured a substantial share of the Indian market. This has created intense competition for domestic manufacturers, particularly small and medium enterprises, which often struggle to match the low prices and high efficiency of Chinese firms. While the availability of affordable electronics has benefited Indian consumers and supported digital adoption, it has also led to increased import dependence and a widening trade deficit. However, the presence of Chinese electronics has encouraged Indian manufacturers to improve productivity, adopt advanced technologies, and focus on innovation. Government initiatives such as Make in India and Production Linked Incentive (PLI) schemes aim to strengthen domestic manufacturing and reduce reliance on imports.