India intends to provide businesses with incentives of up to $5 billion to encourage the local production of parts for devices like laptops and mobile phones, as confirmed by two government officials.
The program seeks to lessen reliance on imports, particularly from China, and boost India’s electronics sector.
India To Offer Incentives of Up To $5 Billion For Local Production of Laptops and Mobile Phones
Due to the creation of mobile devices by multinational companies like Apple and Samsung, India’s electronic output has doubled over the last six years, reaching $115 billion in 2024.
India is currently the world’s fourth-largest provider of smartphones.
The industry is accused of relying too much on imported parts from nations like China, despite its expansion.
To improve domestic value addition and localize supply chains, the new incentive program will promote the production of essential components like printed circuit boards. As per officials, “The new scheme will incentivise production of key components like printed circuit boards that will improve domestic value addition and deepen local supply chains for a range of electronics.”
It is anticipated that the program will be introduced in the upcoming two to three months.
Under the new program, eligible local or international businesses will be eligible to receive incentives between $4–$5 billion.
Indian Ministry Working on Plans And Has Selected Acceptable Components
India’s electronics ministry is working on the plan, which is nearing completion and has selected acceptable components.
Soon, the finance ministry will provide its final permission for the scheme’s allocation.
By fiscal year 2030, India wants to increase electronics manufacturing to $500 billion, which includes $150 billion in component production. This program is a part of that ambition.
Over half of India’s $89.8 billion in imports of electronics, communications equipment, and electrical goods came from China and Hong Kong in the fiscal year 2024.
The program is viewed as essential to increasing local component manufacturing and advancing electronics production on a worldwide scale.
The scheme’s significance in attaining competitive production on a worldwide scale was underscored by Pankaj Mohindroo, the head of India’s Cellular and Electronics Association. He said, “This scheme is coming at a time when it is critical to promote component manufacturing that will help us aim for a global-scale of electronics production.”
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