Employees work on a mobile phone assembly line at Padget Electronics, a subsidiary of Dixon Technologies, in Noida, India, on Friday, March 22, 2024.
Bloomberg | Bloomberg | fake images
In a move aimed at reducing India’s dependence on imports of electronic components, the government approved the first set of projects in its $2.7 billion program, another step in its stated mission of self-reliance in the face of a difficult business environment.
Electronics were India’s third-largest exports in fiscal 2025, having grown eight-fold over the past 10 years to $38.56 billion in the year ending March 2025, according to government data. But that was almost offset by imports of electronic components worth $36.8 billion.
The majority of electronic component imports came from China (nearly 40%), followed by Hong Kong (more than (16%) in the first half of FY2025.
At a time when both the United States and China have resorted to export controls on critical goods such as rare earths and cutting-edge technology, India has been redoubling its efforts to secure its future by promoting schemes aimed at gaining self-sufficiency.
The seven projects approved on Monday under the Electronic Component Manufacturing Scheme will receive grants worth Rs 55.32 billion ($626 million).
They will help establish local manufacturing of electronic components such as camera modules, multi-layer printed circuit boards and advanced high-density PCBs used in smartphones, wearable devices and medical and aerospace components, according to the government.
The ECMS has received 249 applications from local and global companies committing an investment of Rp 1.15 trillion (nearly $14 billion) in proposed investments.
India’s Electronics and IT Minister Ashwini Vaishnaw said that “20% of our domestic PCB demand and 15% of camera module sub-assembly will be met by producing these [seven] plants”, adding that around 60% of the total production of these plants will be exported.
The country’s electronic components market is expected to reach $150 billion by 2030, according to EY estimates, and the overall electronics market (components and finished products) will rise to $500 billion according to the government. Currently, the global electronics market is valued at $1.8 trillion, of which 60% is dominated by China, according to data provided by EY.
India is in a unique position as it has a growing consumer base and is seen as a manufacturing alternative to China as companies diversify supply chains, experts said, adding that by setting up plants in India, global electronics companies can tap local demand, while exporting from the same locations.
A case in point is Apple, whose exports from India rose 42% year-on-year to $12.8 billion in 2024, and the company is shifting more production to India as it moves away from China. In the quarter ended September 2025, India overtook China to become the top smartphone exporter to the US, with a 240% increase in smartphone manufacturing volumes.
According to the Indian government, the country has become the second largest mobile phone manufacturer in the world.
The ECMS shows that the government is recognizing “that a mere assembly ecosystem cannot be sustained without a strong domestic component manufacturing base,” said Kunal Chaudhary, partner and leader of Inbound Investment Group at EY India.
The ECMS will strengthen the domestic component ecosystem, reduce dependence on imports and improve India’s global competitiveness, he added.
Ashok Chandak, president of the Indian Electronics and Semiconductors Association, said the plan will accelerate the country’s emergence as a global hub for advanced electronics and semiconductors and at the same time reduce dependence on imports.”
