Customers are seen inside a VIVO mobile phone store in New Delhi on August 27, 2019. Photo: VCG

The Indian government has reportedly greenlit a joint venture (JV) between Dixon Technologies and Chinese smartphone maker Vivo Mobile that will manufacture electronic devices, including smartphones, in India, according to a Reuters report on Thursday. A Chinese expert said the decision reflects New Delhi's pragmatic recognition of market realities and the critical role of Chinese manufacturing expertise in India's electronics ecosystem.

On Thursday, Dixon said that Vivo Mobile India (VMI) had received the approval, dated July 8, 2026, from the Department for Promotion of Industry and Internal Trade.

Dixon will hold a 51 percent stake in the venture, while VMI will have the remaining 49 percent.

The JV will undertake part of VMI's original equipment manufacturer (OEM) orders for smartphones in India, as well as Vivo's smartphone production orders. It will also engage in OEM business regarding various electronic products from other brands, according to media reports citing Dixon's statement.

Analysts believe the JV will strengthen Dixon's manufacturing capabilities and enhance its market position in India's Android smartphone segment.

Share prices of Dixon Technologies saw a 4.2 percent uptick to 13,477 rupees ($162) at the close of trading, Indian media outlet NDTV reported on Thursday.

JPMorgan has reportedly upgraded Dixon, saying that the company was back on track to be a high-growth stock over the next two years. The brokerage maintained its "overweight" rating and raised its target price to 16,700 rupees from 14,300 rupees, implying a nearly 39 percent upside from Dixon's July 9 closing price, NDTV reported.

The approval concludes a 19-month regulatory process that began when Dixon and Vivo signed an agreement to form a JV in December 2024. Under Indian regulations, large investments by Chinese companies in Indian ventures draw tougher scrutiny, according to Reuters.

Qian Feng, director of the Research Department at Tsinghua University's National Strategy Institute, said that it was a pragmatic move. "The Indian government's decision is driven by market demand and the practical needs of its domestic electronics manufacturing sector," Qian told the Global Times on Friday. "Given India's economic realities, it cannot build a competitive smartphone industry without Chinese technology, supply chain integration, and manufacturing expertise."

Qian urged India to move beyond political sensitivities and focus on mutual economic benefits, saying a more open environment for Chinese firms would help India's industrial development while also benefiting bilateral trade and investment ties.

The move comes after India's Ministry of Finance issued an order on June 24, allowing the local factories of four Chinese power equipment manufacturers - TBEA Energy, Nanjing Electric India, New Northeast Electric India and Taikai Electric (India) - to participate in government tenders ‌for key power projects, according to Reuters.

Chinese analysts said the recent approvals suggest that India is trying to balance geopolitical concerns with economic needs. They argued that with India seeking to expand local manufacturing, create jobs and attract technology-driven investment, it is in New Delhi's interest to make policies more transparent and predictable for Chinese businesses.  

"India's current economic situation makes cooperation with China more necessary than ever," Dai Yonghong, director of the Institute of Area and International Communication of Shenzhen University, told the Global Times on Friday. He added that after years of restrictions on Chinese investment, the Indian government is pragmatically readjusting its economic cooperation with China. 

The driving force behind this shift is not a policy reversal, but rather the pressure from practical needs, said the expert. When the country's "Make in India" strategy hits industrial-chain bottlenecks, when high growth fails to mask concerns over employment and inflation, and when the trade deficit keeps widening despite the rhetoric about "de-risking" with China, practical needs will eventually trump ideological impulses, he said.

Through the JV, about two-thirds of Dixon's production capacity will be integrated locally, which both meets India's localization requirements and brings Chinese manufacturing capabilities and supply-chain resources into the local ecosystem, Dai explained.

China's technological edge and cost-effectiveness remain difficult to replace, Dai said, noting that the approval of the Dixon-Vivo JV signals India's strategic shift from decoupling based on security to co-development for growth. This move may not be the beginning of a strategic pivot, but at least it signals a return to pragmatism.