India intends to provide incentives of up to $5 billion to businesses to encourage local production of parts for devices such as laptops and mobile phones, two government officials have confirmed.
The objective of the program is to reduce dependence on imports, especially from China, and to boost India’s electronics sector.
India to incentivize up to $5 billion for local production of laptops and mobile phones
India’s electronics production has doubled in the last six years, reaching $115 billion in 2024, due to the manufacturing of mobile devices by multinationals such as Apple and Samsung.
India is currently the fourth largest smartphone provider in the world.
The industry has been accused of being overly dependent on imported parts from countries like China despite its expansion.
To improve domestic value addition and localize supply chains, new incentive program Will boost production of essential components such as printed circuit boards. According to officials, “The new scheme will encourage production of key components such as printed circuit boards which will improve domestic value addition and deepen the local supply chain for a range of electronics.”
It is estimated that this program will be introduced in the next two to three months.
Under the new program, eligible local or international businesses will be eligible to receive incentives worth between $4-$5 billion.
The Indian Ministry is working on the plans and has selected the acceptable components.
The Ministry of Electronics of India is working on this plan, which is nearing completion and has selected the acceptable components.
Soon, the Finance Ministry will provide its final approval for the allocation of the scheme.
By fiscal 2030, India wants to grow electronics manufacturing to $500 billion, including component production worth $150 billion. This program is a part of that ambition.
More than half of India’s $89.8 billion in imports of electronics, communications equipment and electrical goods in fiscal 2024 came from China and Hong Kong.
The program is considered essential to increase local component manufacturing and advance electronics production globally.
The importance of this scheme in achieving globally competitive production was underlined by Pankaj Mohindroo, head of Cellular and Electronics Association of India. “This scheme comes at a time when it is important to boost component manufacturing which will help us target global electronics production,” he said.
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