The Indian government has now approved a significant $626 million initiative which has been aimed at strengthening the country’s electronics components production ecosystem.
This move would also help align with India’s broader vision in order to become a global manufacturing hub and also to reduce its dependency on imports of critical electronic parts, such as semiconductors, be it camera modules, and even printed circuit boards (PCBs).
Under this scheme, the financial incentives and even infrastructure support will be provided to the local manufacturers so that they can contribute to boosting domestic production capacity.
The government aims to encourage both the existing and new players to invest in the field of component manufacturing, thereby improving the value addition within the whole country.
The initiative is also expected to enhance India’s overall participation in the whole global electronics supply chain while being the one promoting technological innovation and skill development in the sector.
The policy also complements the ongoing efforts that are being made under the “Make in India” and “Atmanirbhar Bharat” campaigns.
With the growing demand for the smartphones, wearables, and even the electric vehicles, the need for the indigenous component production has been a topic that has become critical.
By localising the key elements of the electronics supply chain, India also aims to improve the factor of self-reliance, create thousands of high-skill jobs, and even wants to attract major foreign investments in manufacturing clusters.
Industry experts believe this decision will help accelerate the development of component ecosystems, particularly in major states like Tamil Nadu, Karnataka, and Uttar Pradesh, where electronics manufacturing has become a field that’s already flourishing.
Additionally, it will also help to reduce the trade deficit by helping to cut down on costly imports of raw materials and components in the electronics industry.
