In a move aimed at cutting India’s import dependency for electronic components, the government has approved the first set of projects under its $2.7 billion program, yet another measure in its stated self-sufficiency mission against a trying trade environment.
Electronic goods were India’s third largest exports in fiscal year 2025, having jumped eight-fold over the last 10 years, to $38.56 billion in the year ended March 2025, according to government data. But those were nearly offset by imports of electronic components worth $36.8 billion.
Most of the electronic component imports came from China (nearly 40%), followed by Hong Kong (over (16%) in the first half of fiscal year 2025.
At a time when both the U.S. and China have resorted to export controls of critical goods such as rare earths and high-end tech, India has been doubling down on its efforts to secure its future by promoting schemes aimed at gaining self-sufficiency.
The seven projects approved on Monday under the Electronics Component Manufacturing Scheme will receive grants worth 55.32 billion rupees ($626 million).
They will help set up local manufacturing of electronic components such camera modules, multi-layered printed circuit boards and advanced high-density PCBs used in smartphones, wearable devices, medical and aerospace components, according to the government.
The ECMS has received 249 applications from local and global companies committing investment of 1.15 trillion rupees (nearly $14 billion) in proposed investments.
India’s Minister for Electronics & IT Ashwini Vaishnaw said that “20% of our domestic demand of PCBs and 15% of Camera Module sub-assembly will be met through production from these [seven] plants,” adding that about 60% of total production from these plants will be exported.
The country’s electronics components’ market is projected to reach $150 billion by 2030, according to EY estimates, with overall electronics market — components and finished goods — set to scale to $500 billion as per the government. Currently the global electronics market is valued at $1.8 trillion, 60% of which 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 into the 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 U.S., with a 240% jump in smartphone manufacturing volumes.
According to the Indian government, the country has become the world’s second largest mobile phone manufacturer globally.
The ECMS shows that the government is recognizing “that a mere assembly ecosystem cannot sustain itself 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 import dependence, and India’s enhance global competitiveness, he added.
Ashok Chandak, president of India Electronics and Semiconductor Association, said the scheme will accelerate the country’s emergence as a global hub for advanced electronics and semiconductors and at the same time reduce import dependence.”
Source: CNBC