Government May Greenlight Select China Joint Ventures In Strategic Sectors | Profit Exclusive

India may approve joint ventures between domestic firms and Chinese partners in strategic sectors such as electronics, renewable energy, and infrastructure, according to people familiar with the matter.

Roughly six to seven joint venture proposals are in advanced stages of review. Companies including Dixon Technologies, Bhagwati (Micromax), and Karbonn are seeking approvals, the sources said.

The government is assessing projects that could enhance domestic manufacturing under the new component manufacturing scheme. Officials emphasised that only proposals involving real technology transfer—beyond simple assembly—will be considered.

Authorities will approve ventures only if Indian companies retain control and there are no data or national security risks. These moves come amid a wider policy discussion, following a NITI Aayog proposal to allow Chinese firms to hold up to 24% in Indian entities without triggering security checks.

At present, all Chinese foreign direct investment must be cleared by the government under Press Note 3 rules.