India is set to introduce a significant incentive scheme aimed at bolstering local electronics manufacturing, offering up to $5 billion to domestic firms. This initiative is part of the government’s strategy to reduce reliance on Chinese imports and enhance the country’s self-sufficiency in electronics production.
The primary goal is to encourage local production of essential components for various gadgets, including mobiles and laptops. This move is expected to strengthen India’s electronics sector, which has seen substantial growth, reaching $115 billion in production by 2024.
The incentives will focus on critical components such as printed circuit boards which are vital for enhancing domestic value addition and developing robust local supply chains.
The Electronics Ministry has identified specific components that will be eligible for these incentives, and the scheme is anticipated to launch within the next two to three months.
In the fiscal year 2024, India imported approximately $89.8 billion worth of electronics, with over half coming from China and Hong Kong. This dependency has raised concerns, prompting the government to take decisive action to boost local manufacturing capabilities.
According to NITI Aayog, a prominent government think tank, India aims to expand its electronics manufacturing sector to $500 billion by 2030, including a target of producing components worth $150 billion.
This initiative reflects India’s broader ambition to emerge as a global manufacturing hub while reducing its vulnerability to external supply chain disruptions.