Indian contract manufacturers of electronic items, like Dixon Technologies and Karbonn Group, have successfully matched China’s manufacturing cost by adopting Chinese methods and investing in automation. This has encouraged global brands, including Chinese-owned ones, like Xiaomi, to consider exporting products from Indian contract manufacturers. The government’s production-linked incentive (PLI) scheme has played a key role in helping Indian manufacturers match China’s manufacturing cost. Dixon Technologies is expanding its exports to new customers in Germany and the UK, while also planning to ship mobile phones for anchor customers like Motorola and Nokia. Karbonn Group is. also venturing into component exports for air-conditioners. Tata Electronics is entering the arena by acquiring Taiwanese contract manufacturer Wistron Corp’s India operations, which assembles iPhones. This is the first time an Indian entity will produce iPhones for both Indian and global markets. Indian contract manufacturers are attracting global brands, including Chinese-owned ones, due to their ability to match China’s manufacturing cost and invest in automation.