India plans to launch a $5 billion incentive initiative for local electronic component production, aiming to boost the industry and reduce reliance on Chinese imports. With electronic manufacturing exceeding $115 billion in 2024, led by mobile giants like Apple and Samsung, India targets $500 billion production by 2030. The scheme, focusing on key components, is poised to strengthen the local supply chain and elevate India as a global electronics manufacturing hub.
India is set to launch a groundbreaking initiative, offering incentives of up to $5 billion to companies willing to produce electronic components locally. This strategic move aims to boost the rapidly growing industry and reduce reliance on imports from China.
Over the past six years, India's electronic manufacturing sector has witnessed remarkable growth, with production soaring to $115 billion in 2024, driven primarily by the expansion of mobile manufacturing giants like Apple and Samsung. Today, India proudly stands as the world's fourth-largest supplier of smartphones.
Despite these achievements, the industry has faced scrutiny for its heavy dependence on imported components, particularly from countries like China. In response, officials have unveiled a visionary plan to encourage the domestic production of vital components such as printed circuit boards. This initiative not only promises to enhance local value addition but also aims to strengthen the indigenous supply chain for a wide array of electronics.
The innovative scheme, set to be launched within the next few months, is expected to provide incentives totaling between $4 to $5 billion to both global and local firms that meet the qualifying criteria. Crafted by India's electronics ministry, the plan has meticulously outlined the eligible components for incentives and is nearing its final stages of preparation.
Anticipation looms as the finance ministry gears up to greenlight the scheme's allocation, marking a significant milestone in India's quest to become a global hub for electronics manufacturing. With the ultimate goal of expanding electronic production to a remarkable $500 billion by 2030, including component production valued at $150 billion, India is steadfast in its ambition to revolutionize the sector.
Recent data reveals that in the fiscal year 2024, India imported electronics, telecom equipment, and electrical products worth $89.8 billion, with a significant portion originating from China and Hong Kong. Against this backdrop, industry experts like Pankaj Mohindroo, the head of India's Cellular and Electronics Association, applaud the upcoming scheme as a pivotal step towards achieving a robust global-scale of electronics production.
As India embarks on this transformative journey, the forthcoming incentives scheme stands as a beacon of hope, propelling the nation towards a future where local innovation and manufacturing prowess reign supreme.
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