India sweetens the deal for global electronics manufacturers
- IBEF
- July 13, 2026
India is intensifying efforts to establish itself as a global electronics manufacturing hub by shifting focus from large-scale device assembly to the domestic production of high-value components and capital equipment. As reported on July 10, 2026, the government is introducing policy measures to reduce manufacturing costs, strengthen local value addition and encourage greater participation from global electronics manufacturers. Recent decisions, including the removal of import duties on select smartphone and electronics components and the extension of customs duty relief on machinery and inputs used for electronics manufacturing until 2029, are aimed at improving India's competitiveness and attracting fresh investments. These initiatives complement the government's broader strategy to deepen the electronics supply chain, reduce import dependence and integrate Indian manufacturers more closely with global value chains.
The policy push reflects India's ambition to move beyond being an assembly destination and develop a comprehensive electronics ecosystem encompassing components, equipment and advanced manufacturing capabilities. Industry stakeholders believe that lowering input costs and improving the ease of manufacturing will encourage multinational companies to expand their production footprint in the country while supporting domestic firms in scaling operations. A stronger component ecosystem is expected to enhance supply chain resilience, increase domestic value addition and reinforce India's position as a preferred destination for electronics manufacturing and exports. The government's continued focus on policy stability, infrastructure development and investment-friendly reforms is expected to accelerate the sector's long-term growth, creating new opportunities across manufacturing, technology and supporting industries while strengthening India's role in the global electronics value chain.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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