Indian Government to Offer Up to $5 Billion in Incentives for Electronics Production, Weaning Off China

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It is now the world's fourth-largest smart phone supplier.\r\n\r\nBut the sector faces criticism for its heavy reliance on imported components from countries such as China.Samsung Wins Patent for a Tri-Fold Smartphone With Specialised Barrier Layer for Improved Durability\r\n\r\n"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.\r\n\r\nThe 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.\r\n\r\nThe scheme is likely to offer incentives totalling between $4-$5 billion to global or local firms which qualify.iPhone Production May Double to $30 Billion in India: Report\r\n\r\nThe plan, designed by the India's electronics ministry, has identified components eligible for incentives and is in its final stages.\r\n\r\nThe finance ministry will approve the scheme's final allocation soon, the first official added, with the sources expecting it to be launched in the next 2-3 months.\r\n\r\nIndia's electronics ministry and finance ministry did not immediately respond to requests for comment.Government Asks Companies to Seek New Approvals for Laptop Imports in 2025\r\n\r\nIndia is aiming to expand its electronics manufacturing to $500 billion (roughly Rs. 42,22,075 crore) by the fiscal year 2030, including production of components worth $150 billion (roughly Rs. 12,66,629 crore), according to the government's top policy think tank Niti Aayog.\r\n\r\nIndia imported electronics, telecoms gear, and electrical products worth $89.8 billion (roughly Rs.&nbsp;7,58,334 crore) in the fiscal year 2024, with more than half sourced from China and Hong Kong, according to an analysis by private think tank GTRI.\r\n\r\n"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.\r\n\r\n\u00a9 Thomson Reuters 2024\r\n.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; }\r\n\r\n","keywords":"India,Electronics Manufacturing,Apple,Samsung,Mobile Phones,Laptops,China","url":"https://www.gadgets360.com/mobiles/news/india-offer-usd-5-billion-incentives-electronics-manufacturing-laptops-smartphones-china-7080158","inLanguage":"en","mainEntityOfPage":{"@type":"WebPage","@id":"https://www.gadgets360.com/mobiles/news/india-offer-usd-5-billion-incentives-electronics-manufacturing-laptops-smartphones-china-7080158"},"author":[{"@type":"Person","name":"Reuters"}],"image":{"@type":"ImageObject","url":"https://i.gadgets360cdn.com/large/tata_electronics_Reuters_1732276051328.jpg","width":"1200","height":"675","caption":"The incentive plan has been designed by the India's electronics ministry."},"publisher":{"@type":"Organization","name":"Gadgets 360","url":"https://www.gadgets360.com","logo":{"@type":"ImageObject","url":"https://cdn.gadgets360.com/gadgets360_logo.png","width":160,"height":45}},"alternativeHeadline":"Centre to Offer Up to $5 Billion in Incentives for Electronics Production","articleSection":"Mobiles","thumbnailUrl":"https://i.gadgets360cdn.com/large/electronics_thumb_reuters_1732276103431.jpg"}</script> <div class="wrapper"> <div id="gnavtabs" class="gnavigation_bg"></div> <div class="header"> <div class="_cntnr"> <div class="navbar_header _flx clearfix"> <div class="logo_main _flx"> <a href="https://www.gadgets360.com/"> <img src="https://cdn.gadgets360.com/gadgets360_logo.png" alt="Technology News" title="Gadgets 360" width="240" height="75"> </a> <div class="_g360langw arrow-r"> <span class="_lngdr _flx"> <span class="_lnghd">English</span> <span class="_edtnx">Edition</span> </span> <ul class="_langdd"> <li ><a href="https://hindi.gadgets360.com/">हिंदी</a></li> <li ><a href="https://bengali.gadgets360.com/">বাংলা</a></li> <li ><a href="https://tamil.gadgets360.com/">தமிழ்</a></li> <li ><a href="https://telugu.gadgets360.com/">తెలుగు</a></li> <li ><a href="https://malayalam.gadgets360.com/">മലയാളം</a></li> <li ><a href="https://gujarati.gadgets360.com/">ગુજરાતી</a></li> <li ><a href="https://marathi.gadgets360.com/">मराठी</a></li> </ul> </div> </div> <div class="_adh" id='adslot728x90ATF'><script>googletag.cmd.push(function () { googletag.display('adslot728x90ATF'); 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});</script> </div> </div> </div> <div id="center_content_div" class="fullstoryCtrl_fulldetails"> <div class='content_text row description'><p>India will offer up to $5 billion (roughly Rs. 42,221 crore) in incentives to companies to make components locally for gadgets from mobiles to laptops, two government officials said, in a bid to bolster the burgeoning industry and wean off supplies from China.</p><p>India's electronic production has more than doubled in the last six years to $115 billion (roughly Rs. 9,71,095 crore) in 2024, led by growth in mobile manufacturing by global firms such as <a class="sp_lnk2" href="https://www.gadgets360.com/apple">Apple</a> and <a class="sp_lnk2" href="https://www.gadgets360.com/samsung">Samsung</a>. It is now the world's fourth-largest smart phone supplier.</p><p>But the sector faces criticism for its heavy reliance on imported components from countries such as China.</p><div class="alsoseewgt oneline clearfix"><div class="hdtxt"><i class="_sp"></i><span></span></div><ul><li><a href="https://www.gadgets360.com/mobiles/news/samsung-tri-fold-smartphone-patent-display-7008821?utm_source=Gadgets360Sam&utm_medium=WebPromo&utm_campaign=Samsung-Nov-24&utm_term=promotion">Samsung Wins Patent for a Tri-Fold Smartphone With Specialised Barrier Layer for Improved Durability</a></li></ul></div><p>"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.</p><p>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.</p><p>The scheme is likely to offer incentives totalling between $4-$5 billion to global or local firms which qualify.</p><div class="alsoseewgt oneline clearfix"><div class="hdtxt"><i class="_sp"></i><span></span></div><ul><li><a href="https://www.gadgets360.com/mobiles/news/iphone-manufacturing-india-usd-30-billion-annually-donald-trump-tariff-china-us-tensions-report-6991808">iPhone Production May Double to $30 Billion in India: Report</a></li></ul></div><p>The plan, designed by the India's electronics ministry, has identified components eligible for incentives and is in its final stages.</p><p>The finance ministry will approve the scheme's final allocation soon, the first official added, with the sources expecting it to be launched in the next 2-3 months.</p><p>India's electronics ministry and finance ministry did not immediately respond to requests for comment.</p><div class="alsoseewgt oneline clearfix"><div class="hdtxt"><i class="_sp"></i><span></span></div><ul><li><a href="https://www.gadgets360.com/laptops/news/india-government-companies-new-approvals-laptop-imports-6645854">Government Asks Companies to Seek New Approvals for Laptop Imports in 2025</a></li></ul></div><p>India is aiming to expand its electronics manufacturing to $500 billion (roughly Rs. 42,22,075 crore) by the fiscal year 2030, including production of components worth $150 billion (roughly Rs. 12,66,629 crore), according to the government's top policy think tank Niti Aayog.</p><p>India imported electronics, telecoms gear, and electrical products worth $89.8 billion (roughly Rs. 7,58,334 crore) in the fiscal year 2024, with more than half sourced from China and Hong Kong, according to an analysis by private think tank GTRI.</p><p>"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.</p><p><em>© Thomson Reuters 2024</em></p><style type="text/css">.embed-container { position: relative; 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Indian Government to Offer Up to $5 Billion in Incentives for Electronics Production, Weaning Off China | Technology News