According to government officials, India is planning to offer incentives of up to $5 billion to domestic electronics manufacturing companies enabling them to produce parts for devices like laptops and cellphones
According to reports, the program seeks to improve domestic electronics manufacturing supply chains in the rapidly expanding industry and lessen dependency on Chinese imports.
Global producers like Apple and Samsung have propelled the nation’s electronics production to $115 billion in 2024, more than doubling its output six years prior. India is currently the world’s fourth-largest provider of smartphones.
According to the Global Trade Research Initiative (GTRI), the industry is still largely reliant on imported parts, especially from China and Hong Kong, which would make up more than half of India’s $89.8 billion in electronics imports in fiscal year 2024.
India’s Ministry of Electronics is leading the upcoming program, which will offer incentives for producing vital parts like printed circuit boards. According to authorities, who asked to remain anonymous since the specifics are still private, these actions are intended to strengthen domestic value addition and promote deeper local supply chains.
Depending on the Ministry of Finance’s permission, the scheme should be unveiled in the following two to three months and give a new boost to India’s domestic electronics manufacturing.
India has big plans to give boost to domestic electronics manufacturing. According to government think tank Niti Aayog, the country wants to increase production to $500 billion by the fiscal year 2030, with $150 billion going toward component manufacturing.
Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association, said, “This scheme is timely as it will encourage component production, enabling India to achieve global-scale electronics manufacturing.”
The action is viewed as essential to furthering India’s objective of becoming a global center for electronics manufacture while lowering reliance on imports. The Ministry of Finance and the Ministry of Electronics have not yet provided a statement on the subject.
This program demonstrates India’s attempts to establish itself as a significant force in the global electronics industry in the face of escalating economic and geopolitical changes.
Earlier research report from the Confederation of Indian Industry (CII) highlights the crucial steps that India must take to change its ecosystem in the Indian Electronics Manufacturing from “import-dependent assembly-led manufacturing” to “component-level value-added manufacturing.”
Reported by The Volt Post, The paper states that in 2022–2023, US$ 45.5 billion in components and subassemblies were needed to enable US$ 102 billion in electronics production and drive the Indian electronics industry.
Inputs take From, Mint
