 "To meet China challenge, India plans $5 bn incentives for local electronic firms")
India will offer up to $5 billion in incentives to local electronics companies to make components for gadgets from mobiles to laptops, two government officials said, in a bid to bolster the burgeoning industry and wean off supplies from China.
India’s electronic production has more than doubled in the last six years to $115 billion in 2024, led by growth in mobile manufacturing by global firms such as Apple (AAPL.O), opens new tab and Samsung (005930.KS), opens new tab. It is now the world’s fourth-largest smart phone supplier.
But the sector faces criticism for its heavy reliance on imported components from countries such as China.
“The new scheme will incentivise production of key components like printed circuit boards that will improve domestic value addition and deepen local supply chains for a range of electronics,” one of the two officials said.
The incentives are likely to be offered under a new scheme expected to be launched in two to three months, said the officials, who asked not to be identified as details of the scheme are not yet public.
The plan, designed by the India’s electronics ministry, has identified components eligible for incentives and is in its final stages. The finance ministry is likely to approve the moves.
India’s electronics ministry and finance ministry did not immediately respond to requests for comment.
India is aiming to expand its electronics manufacturing to $500 billion by the fiscal year 2030, including production of components worth $150 billion, as per the government’s top policy think tank Niti Aayog.
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View AllIndia imported electronics, telecoms gear, and electrical products worth $89.8 billion in the fiscal year 2024, with more than half sourced from China and Hong Kong, according to an analysis by private think tank GTRI.
“This scheme is coming at a time when it is critical to promote component manufacturing that will help us aim for a global-scale of electronics production,” Pankaj Mohindroo, head of India’s Cellular and Electronics Association, said.
(Except for the headline, this story has not been edited by Firstpost staff.)
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