India Plans $5 Billion Electronics Incentives

India is set to offer up to $5 billion in incentives to bolster its electronics manufacturing sector and reduce dependence on Chinese imports. The initiative aims to enhance local production of key components, such as printed circuit boards, as the country's electronics production has surged to $115 billion in 2024, making it the world's fourth-largest smartphone supplier. Despite this growth, the sector faces criticism for its reliance on imports, particularly from China, which accounted for more than half of the $89.8 billion of electronics imported in the fiscal year 2024. The new scheme is expected to be launched in the next two to three months, pending approval from the finance ministry. India aims to expand its electronics manufacturing to $500 billion by 2030, including component production worth $150 billion, as per Niti Aayog. This strategic move is seen as crucial for promoting local supply chains and enhancing domestic value addition.