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In 2023, Reliance Industries sent hundreds of executives and engineers to Chinese industrial hubs like Shenzhen and Wuxi to secure critical equipment for a battery factory.
China was preparing to restrict exports on a range of vital technologies, creating a deadline for Reliance Industries to procure necessary equipment.
China is implementing export controls on rare earth elements and related technologies to protect the manufacturing dominance it has built over the last decade.
Despite billions of dollars invested under the 'Make in India' initiative, India's manufacturing sector has become even more dependent on China for critical components and technology.
China controls key choke points in advanced manufacturing sectors like batteries and electronics, including the supply of raw materials, critical machinery, and technology know-how.
Reliance Industries successfully secured more than $1 billion worth of manufacturing equipment from China before export controls were implemented.
In October 2023, China tightened export controls on its battery supply chain, requiring government approval for the export of some lithium-ion batteries.
India's Finance Minister Nirmala Seetharaman identified seven strategic sectors for manufacturing growth: advanced chemistry cells, semiconductors, renewable energy, AI, biotech, space tech, and defense manufacturing.
India manufactures approximately 25% of Apple's iPhones globally.
The manufacturing sector's share of India's GDP has fallen to 13% in 2024, significantly below Prime Minister Narendra Modi's target of 25%.
India has rejected investment proposals from Chinese auto manufacturers BYD and Great Wall Motor due to strategic mistrust.
Despite successfully acquiring machinery from China, Reliance Industries is now struggling to access the necessary technology and operational know-how to make the equipment functional.