India To Offer Up To $5 Billion In Incentives To Boost Local Electronics Manufacturing

(MENAFN- KNN India) New Delhi, Nov 23 (KNN) India is set to offer up to USD 5 billion in incentives to encourage the production of essential components for electronics, ranging from smartphones to laptops, as the country seeks to bolster its growing tech industry and reduce reliance on Chinese imports.

The new initiative, which will likely be launched within the next two to three months, aims to stimulate the domestic manufacturing of components such as printed circuit boards (PCBs), a critical element in electronic devices.

India's electronics production has more than doubled in the past six years, reaching a robust USD 115 billion in 2024. This growth has been driven largely by the success of mobile manufacturing, with global giants like Apple and Samsung establishing large-scale production in the country. As of 2024, India has emerged as the world's fourth-largest smartphone supplier.

However, despite these strides, the sector faces persistent challenges, notably its heavy dependence on imported components, primarily from China.

To address this, the Indian government is rolling out a new scheme that will offer substantial financial incentives to both global and local firms that meet the required criteria.

The scheme is expected to distribute between USD 4 billion and USD 5 billion in total to qualifying companies. These incentives are part of a broader strategy to strengthen domestic supply chains and increase the local value-added production of key electronics components.

The plan, spearheaded by India's Ministry of Electronics, is expected to play a pivotal role in the country's ambitions to expand its electronics manufacturing sector to USD 500 billion by 2030, including USD 150 billion in component production.

In fiscal year 2024, India imported electronics worth USD 89.8 billion, with more than half of these imports coming from China and Hong Kong. This heavy reliance on imports underscores the urgency of fostering a self-reliant domestic supply chain.

Industry experts, like Pankaj Mohindroo, head of India's Cellular and Electronics Association, have welcomed the initiative, emphasising that it is critical to ensure the country remains competitive on the global electronics stage.

(KNN Bureau)

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