India unveils US$ 5 billion (Rs. 42,245 crore) plan to strengthen domestic electronics component production

According to government officials, India is set to introduce incentives worth up to US$ 5 billion (Rs. 42,245 crore) to encourage local electronics firms to manufacture components for devices such as smartphones and laptops. The initiative aims to reduce the country's reliance on Chinese imports and strengthen domestic supply chains within the rapidly growing sector. India's electronics production reached US$ 115 billion (Rs. 9,71,635 crore) in FY24, more than double its output from six years ago, driven by global manufacturers like Apple and Samsung. However, the industry remains heavily dependent on imported components, particularly from China and Hong Kong, which account for over half of India’s US$ 89.8 billion (Rs. 7,58,720 crore) electronics imports in FY23, according to the Global Trade Research Initiative (GTRI).

The scheme, spearheaded by India’s Ministry of Electronics and Information Technology, will offer incentives for manufacturing critical components such as printed circuit boards. This is expected to foster deeper local supply chains and enhance domestic value addition. The programme, awaiting approval by the Ministry of Finance, is set to be unveiled within the next two to three months. India has set an ambitious target to scale up electronics production to US$ 500 billion (Rs. 42,24,500 crore) by FY30, with US$ 150 billion (Rs. 12,67,350 crore) of that figure attributed to component manufacturing, as outlined by the government think tank Niti Aayog. The initiative aligns with India’s broader goal of becoming a global electronics manufacturing hub while reducing import dependency.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.