Eyeing to reduce Chinese imports and powering its $500 billion industry goal, India plans to offer up to $5 billion in incentives to boost local electronics component production.
India is set to offer up to $5 billion in incentives to companies that manufacture electronic components locally, ranging from mobile parts to laptop components, in a bid to strengthen its growing industry and reduce reliance on Chinese imports, according to a report by the Economic Times.
The new incentive programme aims to encourage the domestic production of components, such as printed circuit boards (PCBs), to increase local value-added manufacturing and enhance the local supply chain for various electronics.
It is expected to be introduced in two to three months, with incentives ranging from $4 billion to $5 billion for qualifying global or local companies. According to the report, it is currently in the final stages of implementation.
India’s electronics production has reportedly surged more than twice in the past six years, reaching $115 billion in 2024, driven by mobile manufacturing growth from global companies like Apple and Samsung.
However, despite being the world’s fourth-largest supplier of smartphones, the sector has faced criticism for its dependency on imported components, particularly from China. According to research by GTRI, in fiscal year 2024, India imported $89.8 billion in electronics and telecom equipment, with over half of it coming from China and Hong Kong.
To address this, the programme is a brainchild of the Ministry of Electronics and Information Technology (MeitY). The finance ministry is expected to approve the final details soon.
Industry experts like Pankaj Mohindroo, head of India’s Cellular and Electronics Association, emphasised that this scheme is crucial to advance component manufacturing, helping India scale its electronics production to a global level.
India aims to boost its electronics manufacturing industry to $500 billion by 2030, including $150 billion in components production, as per the government’s policy body, NITI Aayog.
