Government clears Vivo-Dixon joint venture under eased Press Note 3 FDI framework

India has cleared the joint venture between Vivo and Dixon Technologies under the Press Note 3 FDI norms, government sources confirmed on Thursday evening, in a move that formally brings one of China's largest smartphone brands into a compliant domestic manufacturing structure in India.

Press Note 3, introduced in 2020 in the aftermath of the Galwan Valley border clashes, requires investments from countries that share a land border with India — including China — to receive prior government approval rather than following the automatic FDI route. The framework was designed to prevent opportunistic Chinese acquisitions of Indian companies during the pandemic, but it also created a lengthy and uncertain approval process for legitimate manufacturing partnerships.

The Vivo-Dixon deal had been in the regulatory pipeline for some time. Dixon Technologies, one of India's largest contract electronics manufacturers with an established track record in making smartphones for brands including Samsung and Motorola, is the Indian partner in the venture. The structure, with a domestic Indian company holding a meaningful stake and operational role, appears to be the template that won government comfort under the eased Press Note 3 framework.

The approval carries broader significance for India's electronics manufacturing ambitions. Several other Chinese smartphone and component makers have been seeking similar JV or investment clearances through Indian partners. A clear green light for the Vivo-Dixon structure provides a visible precedent, and could unlock a pipeline of manufacturing investments that would add to the capacity India needs if it is to credibly position itself as a global alternative to Chinese smartphone production.