India’s $1.2 trillion electronics industry faces new risks after China introduced export restrictions under State Council decrees 834 and 835. These measures, limiting shipments of key machinery and components, have alarmed Indian electronics and automobile manufacturers who fear delays in investment and production. Executives have begun discussions with Chinese suppliers to assess the impact, while the domestic industry has alerted India’s Ministry of Electronics and Information Technology.

The challenge comes as India pushes to become a global manufacturing hub, with exports rising from $8.6 billion in 2015 to $470 billion in 2025. The government aims to reach $1.2 trillion by the end of 2026. However, China’s control over essential equipment and rare-earth materials exposes India’s dependence on Chinese supply chains. Commerce Minister Piyush Goyal said the government is developing sector-specific investment plans to reduce reliance on certain regions and will launch 50 industrial parks under a new initiative.

Industry leaders view the situation as both a warning and an opportunity. Some urge stronger domestic supplier networks and balanced policies to build resilience, while others see a turning point for India to deepen local manufacturing and technology capabilities.