India Launches $5 Billion Initiative to Boost Domestic Electronics Component Manufacturing

• Chinmay
• November 25, 2024
• India, News
• Apple, domestic production, electronics components, Electronics Manufacturing, government incentives, india, IoT, printed circuit boards, samsung, smartphone manufacturing, supply chain
• 0 Comments

India is gearing up to unveil a groundbreaking $5 billion incentive scheme aimed at boosting domestic production of electronics components for devices such as smartphones, laptops, and more. According to Reuters, this initiative seeks to reduce dependence on imports, particularly from China, and strengthen local supply chains in the rapidly growing electronics sector.

India’s electronics production has seen remarkable growth, reaching $115 billion in 2024—more than double its output from six years ago. This surge has been fueled by global giants like Apple and Samsung, propelling India to become the world’s fourth-largest smartphone supplier.

Despite this progress, the industry remains reliant on imported components, with China and Hong Kong accounting for over 50% of India’s $89.8 billion electronics imports in fiscal year 2024, as reported by the Global Trade Research Initiative (GTRI).

The forthcoming scheme, spearheaded by India’s Ministry of Electronics, aims to address this challenge by incentivizing local manufacturing of critical components, such as printed circuit boards. The initiative seeks to enhance domestic value addition and foster robust local supply chains. While official details remain confidential, sources indicate that the program is expected to roll out within the next two to three months, pending approval from the Ministry of Finance.

India’s ambitions in the electronics manufacturing space are vast. The country has set a target of scaling production to $500 billion by fiscal year 2030, with $150 billion earmarked for component manufacturing, according to Niti Aayog, the government’s policy think tank.

“This scheme is timely as it will encourage component production, enabling India to achieve global-scale electronics manufacturing,” said Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association.

This strategic move aligns with India’s broader goal of becoming a global electronics manufacturing hub while reducing reliance on imports amid growing geopolitical and economic shifts.

With this initiative, India is poised to strengthen its position in the global electronics landscape, signaling a significant shift toward self-reliance and competitiveness.