Govt clears Dixon-Vivo JV for smartphone manufacturing, easing China investment rules
The Indian government has approved a joint venture between Dixon Technologies (India) Limited and Vivo Mobile India Limited (VMI) for manufacturing electronic devices and smartphones, marking one of the first major approvals for Chinese investment in a strategic sector since 2020.
In a filing to the Bombay Stock Exchange (BSE) on July 8, 2026, Dixon Technologies confirmed that VMI received government approval under Press Note 3 of 2020. This regulation, introduced in April 2020, mandates government approval for investments from countries sharing a land border with India, primarily targeting China amid security concerns following the Galwan clash.
The joint venture will be owned 51% by Dixon and 49% by VMI, and will function as an Original Equipment Manufacturer (OEM) for electronic devices, particularly smartphones. The approval comes as India seeks to balance its economic relationships amid tense trade ties with the United States.
This move follows recent policy changes aimed at boosting domestic manufacturing. On Wednesday, the Finance Ministry exempted customs duty on 85 capital goods used in lithium-ion cell manufacturing and inputs for display assemblies and wireless charging components in mobile phones, effective until March 2029. A ministry official stated that these exemptions are intended to promote domestic manufacturing in automotive, medical, and industrial sectors, and to deepen value addition in mobile phone manufacturing.
The Dixon-Vivo approval also comes days after the Finance Ministry allowed four Chinese power equipment manufacturing companies with factories in India to participate in government tenders for critical power projects. These firms—TBEA Energy, Nanjing Electric India, New Northeast Electric India, and Taikai Electric (India)—have been exempted from public procurement rules that require registration for entities from land-bordering countries. They manufacture key equipment such as transformers, wires, and switchgear used in transmission lines.
In March 2026, the government approved a 60-day deadline for clearing investment proposals from land-bordering countries, including China, for capital goods, electronic components, and solar cell materials. Under the revised norms, majority shareholding and control of the investee entity must remain with resident Indian citizens or entities owned and controlled by them.
