News Brief
India Plans $5 Billion Incentive Scheme To Promote Local Manufacturing Of Electronics Component—All About It
Electronics Manufacturing (Representative Image)
India reportedly plans to offer incentives worth up to $5 billion to domestic electronics manufacturers for making components used in gadgets like mobiles and laptops, news agency Reuters reported citing government officials.
The move aims to strengthen India's growing electronics sector and reduce dependence on Chinese imports.
The country's electronics production has surged over the past six years, reaching $115 billion in 2024.
This growth has been fuelled by the expansion of mobile manufacturing by global players like Apple and Samsung, making India the fourth-largest smartphone supplier globally.
However, the industry has drawn criticism for its reliance on imported components, particularly from China.
According to the officials cited in the Reuters report, the incentives are likely to be offered under a new scheme expected to be launched in two to three months.
The Electronics Ministry has reportedly identified components eligible for incentives under the plan, which is in its final stages.
According to top government policy think tank Niti Aayog, India aims to grow its electronics manufacturing to $500 billion by 2030, including production of components worth $150 billion
In FY 2024, India imported $89.8 billion worth of electronics, telecom equipment, and electrical products, over half of which came from China and Hong Kong, according to an analysis by private think tank GTRI.
