Chinese Manufacturing’s Push Into India Uncovers Major Challenges (AI Translation)
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This article was translated from Chinese using AI. The translation may contain inaccuracies. Click the button on the right to hide or reveal the original version.
当地时间2025年6月26日，印度古尔冈，德瓦卡高速公路。印度的基础设施整体发展滞后，让“印度制造”的吸引力大打折扣。
文｜财新周刊 邹晓桐（发自印度新德里）
By Caixin Weekly's Zou Xiaotong (Reporting from New Delhi, India)
2025年6月12日，隶属印度航空的一架波音787客机从印度西部古吉拉特邦起飞，不到50秒即下坠撞向机场附近一栋医学生宿舍楼，造成机上与地面至少241人遇难，其中包括印度古吉拉特邦前首席部长鲁帕尼（Vijay Rupani）。
On June 12, 2025, a Boeing 787 operated by Air India took off from the western Indian state of Gujarat. Less than 50 seconds later, the aircraft plunged and crashed into a medical student dormitory building near the airport. The accident claimed the lives of at least 241 people both on board and on the ground, including former Gujarat Chief Minister Vijay Rupani.
这一震动全球的空难事故目前仍在调查中。巧合的是，就在十余日前的6月1日至3日，国际航空运输协会（IATA，下称“国际航协”）年度大会暨世界航空运输峰会时隔42年重回印度，印度借东道主机会向1600多名来自全球航空业高管及各国政要，大力展示其加快航空业布局的宏大愿景。
This global-shaking aviation disaster is still under investigation. Coincidentally, just over ten days ago, from June 1 to 3, the International Air Transport Association (IATA) held its annual conference and World Air Transport Summit in India—the first time in 42 years the event returned to the country. India took advantage of its role as host to showcase to more than 1,600 senior executives from the global aviation industry and government officials its grand ambitions to accelerate the expansion of its aviation sector.
印度总理莫迪（Narendra Modi）在峰会上称，印度已成为仅次于中国、美国的全球第三大国内航空市场：机场从2014年的74个增加至162个，航司订购了超过2000架新飞机；到2030年，印度的航空客运量将达到5亿人次；与之对照，2024年，中、美两国航空客运量分别在7.3亿人次、9.8亿人次。
Indian Prime Minister Narendra Modi stated at the summit that India has become the world’s third-largest domestic aviation market, trailing only China and the United States. The number of airports in India has increased from 74 in 2014 to 162, and airlines have ordered more than 2,000 new aircraft. By 2030, India’s annual air passenger traffic is expected to reach 500 million. In comparison, in 2024, China and the United States are projected to record 730 million and 980 million airline passengers, respectively.
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Caixin is acclaimed for its high-quality, investigative journalism. This section offers you a glimpse into Caixin’s flagship Chinese-language magazine, Caixin Weekly, via AI translation. The English translation may contain inaccuracies.
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Chinese Manufacturing’s Push Into India Uncovers Major Challenges (AI Translation)
Explore the story in 30 seconds
- India aims to become a global manufacturing hub, but “Make in India” progress is slow: manufacturing’s GDP share was 14.3% in 2024, below its 2014 level and far from the 25% target.
- Foreign investment is rising, especially in electronics; Foxconn and Samsung boosted local production, and mobile phone exports grew, yet India still relies heavily on Chinese components.
- Infrastructure remains a bottleneck despite large investments; logistics costs are 2-3 times China’s, and many basic transport improvements face delays and underfunding.
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Explore the story in 3 minutes
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Who’s Who
- Air India
印度航空 - On June 12, 2025, an Air India Boeing 787 crashed shortly after takeoff, killing at least 241 people. The accident occurred despite India's recent efforts to boost its aviation sector, highlighted at a summit just days earlier. The incident underscores ongoing challenges in India's infrastructure and manufacturing capabilities.
- Boeing
波音 - On June 12, 2025, an Air India Boeing 787 crashed in Gujarat, India, shortly after takeoff, killing at least 241 people. This incident occurred shortly after India hosted the IATA annual general meeting, where it promoted its ambition to expand its aviation sector.
- Apple
苹果 - Apple, as a global mobile phone manufacturer, has been increasing its investment in "Made in India." The company plans to produce most Apple phones sold in the US market in India by the end of 2026. From March 2024 to March 2025, Apple assembled iPhones worth $22 billion in India, a nearly 60% year-on-year increase in production.
- Samsung
三星 - The article mentions Samsung as one of the major international mobile phone brands sold in India. It notes that Samsung, a South Korean brand, maintains a significant presence in the Indian smartphone market, standing out as a "big player" among international brands, second only to Chinese brands in sales share as of Q1 2025. It also highlights that Samsung Electronics, alongside Apple supplier Foxconn, has participated in India's Production Linked Incentive (PLI) plan aimed at boosting domestic manufacturing.
- Tata Group
塔塔集团 - Tata Group, India's largest conglomerate, produces electric buses. The company was mentioned in an article discussing how "Made in India" products are visible on the streets of New Delhi, showcasing the country's manufacturing ambitions.
- Yulu
Yulu - Yulu is an Indian company that designs and manufactures shared electric bicycles. These blue e-bikes are a common sight near metro stations in New Delhi. Yulu's presence highlights how local Indian enterprises are active in the country's manufacturing sector.
- vivo
vivo - Vivo is a Chinese mobile phone brand that is very active in the Indian market. Despite challenges faced by Chinese companies in India, Vivo leads the Indian smartphone market with a 22% share as of Q1 2025. Vivo also has a manufacturing presence in India, with its devices being "MADE IN INDIA."
- OPPO
OPPO - OPPO is a Chinese mobile phone brand with a significant presence in India. It operates a manufacturing factory in Noida, India, and its phones are "Made in India." In the first quarter of 2025, OPPO held 15% of the Indian smartphone market share by shipments.
- Xiaomi
小米 - In late 2024, Xiaomi's domestic staff in India were mainly withdrawn, with local employees taking over the Indian subsidiary. This change occurred after the Indian government accused Xiaomi's Indian branch of tax evasion in 2022, leading to increased scrutiny of Chinese companies operating in India.
- realme
realme - The article mentions that realme is one of the Chinese mobile phone brands popular in India. In the first quarter of 2025, realme, an independent brand under OPPO, held an 11% share of the 인도an smartphone market by shipment volume.
- Foxconn Technology Group (Hon Hai Precision Industry)
鸿海集团 - Foxconn Technology Group (Hon Hai Precision Industry) is Apple's largest contract manufacturer. It is significantly increasing its investment in India, with plans to expand factories in Chennai and Bangalore. A new plant in Bangalore, with a $2.6 billion investment, aims to produce 25-30 million iPhones annually by 2025. Foxconn is already manufacturing high-end iPhones like the 16 Pro and Pro Max in India.
- Huawei
华为 - The provided article does not contain information about Huawei. It focuses on "Made in India" initiatives, infrastructure development, and foreign investments in India, particularly from China and the US. It discusses companies like Apple, Samsung, Foxconn, Xiaomi, Vivo, OPPO, and Haier, but does not mention Huawei.
- Tencent
腾讯 - I am sorry. The provided article does not contain information about Tencent. Therefore, I cannot generate a response based on the given content.
- Alibaba
阿里 - The provided article does not contain information about Alibaba. Therefore, I cannot answer your question based on the given content.
- Haier
海尔 - Haier, a Chinese home appliance manufacturer, is deepening its investment in India, with plans to inject an additional 8 billion rupees (approximately $94 million USD). This investment aims to expand its annual production capacity in India from 1.5 million to 2.5 million units. Despite challenges like navigating Indian regulations and securing foreign direct investment approvals, Haier reported a Q1 2025 revenue increase of over 30% in South Asia, holding a 21% market share for French-door refrigerators in India.
- HTC
HTC - The article mentions HTC as a competitor to Chinese phone manufacturers in the Indian market around 2013. At that time, HTC, along with Samsung and Sony, had an established presence in India, posing a challenge to new Chinese brands entering the market.
- Sony
索尼 - The provided article does not mention Sony. It focuses on India's manufacturing ambitions, particularly in the context of the "Made in India" initiative, and its challenges and opportunities.
- Micromax
Micromax - Micromax is an Indian mobile phone brand that was a significant competitor to international brands like Samsung, HTC, and Sony in the Indian market around 2013. It was one of the local brands challenging the dominance of foreign manufacturers at that time.
- Intex
Intex - Intex is an Indian mobile phone brand that once challenged Chinese brands in the Indian market around 2013. However, by Q1 2025, Intex and other local Indian brands had become "scattered and small" compared to the dominant Chinese manufacturers.
- Lava
Lava - The article states that Lava is an Indian domestic mobile phone brand. It was one of the local brands challenging Chinese mobile phone brands that entered the Indian market around 2013. The article describes how these Indian brands, including Lava, controlled offline retail channels.
- HMD Global
HMD Global - The provided article does not contain any information about HMD Global. Therefore, I cannot answer your question.
- Dixon Technologies
Dixon Technologies - Many Chinese smartphone brands are outsourcing production to Indian contract manufacturers like Dixon Technologies due to regulatory and operational factors. Dixon Technologies is also forming a joint venture with vivo India, taking a 51% stake. This strategy helps brands navigate compliance challenges and indirectly benefit from India's Production Linked Incentive (PLI) scheme.
- Bhagwati Products
Bhagwati Products - Bhagwati Products is an Indian original equipment manufacturer (OEM). Chinese smartphone brands have increasingly outsourced their manufacturing operations to Indian OEMs like Bhagwati Products. This strategy helps them navigate regulatory challenges.
- Bharti Airtel
巴帝电信 - Bharti Airtel is an Indian telecommunications company. Its founder, Sunil Mittal, is reportedly in advanced talks to acquire a 49% stake in Haier India. This comes as Haier plans to invest an additional 94 million USD in India.
- TCL
TCL - TCL, another Chinese home appliance brand, anticipates its share in the Indian TV market to reach around 10%. The company has invested over $3 billion in India, operating two factories there. In an election held in November 2024, Donald Trump was elected president of the United States.
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What Happened When
- 2014：
- India's number of airports was 74. Narendra Modi launched the 'Made in India' initiative and Ease of Doing Business ranking for India was 142nd.
- 2014 to 2024：
- India's national highway network expanded from 91,300 km to 146,100 km; port cargo capacity grew from 800 million tons to 1.63 billion tons.
- 2014 to 2024：
- India’s World Bank Ease of Doing Business ranking improved from 142nd to 63rd.
- After 2014：
- India's number of airports increased to 162; Ease of Doing Business ranking improved to 63rd.
- 2019：
- Prime Minister Modi launched the National Infrastructure Pipeline (NIP), calling for 111 trillion rupees investment from 2020 to 2025.
- 2019-20 fiscal year：
- Indian federal infrastructure budget was 3.4 trillion rupees (about $40 billion), or 1.7% of GDP.
- January 2019, December 2021, end of 2022：
- Foxconn invested $214 million (2019), $350 million (Dec 2021), and $500 million (end of 2022) into its Indian operations.
- April 2020：
- India restricted investments from neighboring countries, requiring government approval.
- May 2020：
- China-India border clash occurred; India banned 59 Chinese apps afterward.
- 2022：
- Indian government accused Xiaomi of tax evasion, leading to scrutiny of Chinese-invested companies.
- By 2022：
- India had aimed to increase the manufacturing share of GDP to 25%, but did not achieve this goal.
- 2023：
- Haier India's FDI application for 100 billion rupees was not approved.
- 2023：
- India ranked 38th in World Bank’s Logistics Performance Index, surpassing Vietnam at 43rd.
- 2023：
- IMF projected India's public debt-to-GDP ratio would climb to 82.3% in the 2024–2025 fiscal year.
- March 2024：
- Haryana section of the Dwarka Expressway opened to traffic.
- March 2024：
- As of this date, only 20% of National Infrastructure Pipeline projects had been completed.
- August 14, 2024：
- Prime Minister Modi met with Hon Hai Group Chairman Liu Yangwei to discuss Foxconn’s India investment.
- July 2024：
- Tata Group attempted to acquire 51% of vivo India, but the deal failed.
- July 2024：
- After Modi’s re-election, the Indian government announced an 11.1 trillion rupee federal infrastructure budget for 2024-25 fiscal year.
- October 2024：
- China and India leaders met at the BRICS Summit and reached a consensus on border issues.
- November 2024：
- China and India foreign ministers met and discussed resumption of direct flights (which have not yet resumed as of the article's publication).
- By end of 2024：
- Dixon Technologies and vivo India formed a joint venture, with Dixon holding 51%.
- By 2024：
- The manufacturing share of India's GDP is 14.3%, lower than a decade earlier.
- By 2024：
- China-India bilateral trade volume reached $138.478 billion.
- As of 2024：
- Bilateral trade between India and the United States reached $129.2 billion, with the U.S. trade deficit with India at $45.6 billion.
- As of 2024：
- China and the United States are projected to record 730 million and 980 million airline passengers, respectively. India's annual air passenger traffic is expected to reach 500 million by 2030.
- April 1, 2024 to March 31, 2025：
- India's electronics exports reached $38.58 billion, an increase of 32.4% over the previous fiscal year.
- March 2024 to March 2025：
- Apple assembled $22 billion worth of iPhones in India, up nearly 60% year-over-year.
- Since February 2025：
- Indian embassy slightly loosened business visa requirements for Chinese citizens.
- February 2025：
- Prime Minister Modi and President Trump met, aiming to double bilateral trade to $500 billion by 2030.
- Q1 2025：
- Haier’s revenue in South Asia grew by over 30% year-on-year.
- By Q1 2025：
- Chinese smartphone brands control half of the Indian market.
- March 2025：
- By this time, the PLI scheme had attracted cumulative investment of 1.76 trillion rupees and distributed 215.34 billion rupees in cash incentives.
- March 2025：
- Haier announced an additional 8 billion rupees investment in India.
- March 2025：
- India’s government increased the PLI scheme budget for electronics and IT hardware by 55.8% to 90 billion rupees.
- March 24, 2025：
- Reuters reports Indian government plans to suspend the PLI scheme due to implementation issues.
- As of April 9, 2025：
- China had issued more than 85,000 visas to Indian citizens.
- By end of May 2025：
- Trial operations of the underground section of the Dwarka Expressway in New Delhi began.
- May 19, 2025：
- Foxconn made a new $1.5 billion capital injection into India.
- June 1, 2025 to June 3, 2025：
- IATA held its annual conference and World Air Transport Summit in India for the first time in 42 years.
- June 12, 2025：
- A Boeing 787 operated by Air India crashed less than 50 seconds after takeoff in Gujarat, India, killing at least 241 people.
- By 2025：
- Foxconn plans for its new Bangalore plant to reach an annual production capacity of 25-30 million iPhones.
- Before the United States announced a 10% temporary tariff delay (date unspecified, but after 2024)：
- The U.S. imposed a 26% tariff on India, lower than for Vietnam and Thailand.
AI generated, for reference only
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