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1. Dealing with China’s weaponisation of e-supply chains
Context: China is restricting the movement of its engineers and the export of specialized manufacturing equipment to India, impacting Apple’s Foxconn operations. This move is seen as an attempt to slow India’s rise in electronics manufacturing and maintain its dominance in global supply chains. India must accelerate its efforts to reduce dependence on China and build a resilient manufacturing ecosystem.
Key Points:
- China’s Restrictions on E-Supply Chains:
- China has restricted travel of its engineers working in India’s Foxconn facilities and curbed exports of specialized equipment.
- This move impacts India’s electronics manufacturing ambitions, particularly Apple’s operations.
- Geopolitical Competition in Manufacturing:
- China’s actions reflect a strategic effort to slow India’s rise as a manufacturing hub.
- India is adopting a China Plus One strategy to attract global investment amid Western tensions with China.
- Importance of Apple-Foxconn in India’s Manufacturing:
- Apple-Foxconn has become central to India’s ambitions under ‘Make in India.’
- In FY 2024, Apple assembled $14 billion worth of iPhones in India.
- Government Initiatives to Boost Electronics Manufacturing:
- Production-Linked Incentive (PLI) Scheme: Increased budget allocation from ₹6,125 crore (2024) to ₹8,885 crore (2025).
- Tax Relief: Removal of import duties on key components like printed circuit boards and lithium-ion battery manufacturing equipment.
- National Manufacturing Mission to support small, medium, and large industries.
- Challenges and Future Strategies:
- India’s dependence on China for components and technology remains high.
- Need for indigenous component manufacturing and technological self-reliance.
- Strengthening skill development programs and on-site training for workers.
- Encouraging private capital investment in domestic contract manufacturing.
- India-China Relations & Economic Implications:
- Despite an October 2024 thaw in India-China ties, economic interdependence remains a factor.
- The strategic rivalry between both nations is expected to grow in the coming years.
2. The Teesta dam and the long shadow of climate change
Context: The Indian government plans to rebuild the Teesta-3 dam in Sikkim, despite concerns about climate change risks. The dam was destroyed in a 2023 glacial lake outburst flood (GLOF), which killed over 100 people and displaced thousands. Experts argue that increasing glacial instability and unpredictable weather patterns make reconstruction risky, questioning the justification based on commercial viability.
Key Points:
- Glacial Lake Outburst Flood (GLOF): The 2023 disaster was triggered by moraine collapse at South Lhonak lake, releasing 50 billion liters of water, causing deaths and widespread destruction.
- Impact of Climate Change: Rising temperatures and black carbon deposits accelerate glacier melting, increasing the number and size of glacial lakes, heightening flood risks.
- Concerns Over Teesta-3 Reconstruction: The dam is located in a seismically active and landslide-prone region, raising questions about its long-term viability.
- Risk of Large Hydroelectric Projects: Environmentalists and hydrogeologists argue that such projects amplify disaster risks instead of mitigating them.
- Flaws in Risk Assessment Models: Experts highlight that current flood models do not fully account for sediment transport, erosion, and unexpected landscape changes.
- Need for a Resilient Development Approach: Instead of focusing solely on commercial viability, planning should prioritize minimizing risk to local communities and ensuring socio-economic resilience.
- Policy Considerations: Calls for integrating climate risk assessments into infrastructure projects and re-evaluating the sustainability of hydropower in the Himalayas.
Disclaimer:
This analysis is based on the editorial content published in The Hindu and is intended solely for informational and educational purposes. The views, opinions, and interpretations expressed herein are those of the author of original article. Readers are encouraged to refer to the original article for complete context and to exercise their own judgment while interpreting the analysis. The analysis does not constitute professional advice or endorsement of any political, economic, or social perspective.
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