India plans to offer incentives of up to $5 billion to companies that produce components locally for products like mobile phones and laptops. This move aims to boost the growing industry and reduce reliance on China for supplies.

India's electronic production has more than doubled in the last six years, reaching $115 billion in 2024. This growth is mainly due to the rise in mobile phone manufacturing by global companies like Apple and Samsung. India is now the fourth-largest smartphone supplier in the world. However, the sector has faced criticism because it still depends heavily on imported parts, particularly from 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," said one of the two officials.

The incentives will likely be provided under a new program that will be introduced in two to three months, according to officials who asked not to be named since the program's specifics are still unknown. The scheme is expected to provide incentives worth $4–$5 billion to eligible local or international firms. India's electronics ministry has developed a plan to offer incentives for certain components, and it is now in the final stages. The finance ministry is expected to approve the scheme's budget soon, with the plan likely to be launched in the next 2-3 months. India is aiming to grow its electronics manufacturing sector to $500 billion by 2030, including $150 billion in component production, according to the country's policy think tank, Niti Aayog.

Both the electronics and finance ministries did not immediately respond to requests for comment. According to a report by the private think tank GTRI, India imported $89.8 billion worth of electrical, telecom, and electronics goods in fiscal year 2024, with over half coming from China and Hong Kong. "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.