India has approved electronic component manufacturing projects worth 418.63 billion rupees ($4.64 billion) under a government incentive program designed to strengthen domestic supply chains and reduce reliance on imports. The announcement, made by the country’s IT ministry on Friday, marks a significant step in India’s broader effort to position itself as a global electronics manufacturing hub.

The approved projects fall under the Electronics Component Manufacturing Scheme, which carries a total government outlay of 229.19 billion rupees. A mix of global and domestic players are set to benefit, including Samsung Electronics, Tata Electronics, and Foxconn. These companies will receive subsidies to expand or establish facilities producing key electronic parts such as mobile phone enclosures, camera sub-assemblies, and other critical components.

Strengthening Domestic Electronics Supply Chains

The latest approvals underscore India’s aggressive push to deepen its electronics ecosystem beyond final assembly. While India has made notable gains in smartphone assembly in recent years, policymakers have increasingly focused on localizing component production, which represents a higher value-added segment of the supply chain.

According to the IT ministry, the newly approved projects are spread across eight states and are expected to generate electronic components worth about 2.58 trillion rupees ($28.62 billion) over time. The investments are also projected to create roughly 34,000 jobs, supporting regional development alongside industrial expansion.

Government Targets $500 Billion Electronics Output

India’s electronics manufacturing output reached approximately $125 billion in the fiscal year ending March 2025. The government has set an ambitious target to quadruple that figure to $500 billion by fiscal 2031, banking on a mix of incentive schemes, infrastructure investment, and policy stability to attract capital.

Programs such as the Electronics Component Manufacturing Scheme complement earlier production-linked incentive initiatives that drew major global manufacturers to India. Together, these efforts aim to reduce import dependence, particularly on components sourced from East Asia, while building resilience into supply chains increasingly exposed to geopolitical and trade disruptions.

Global Players Expand Footprint as India Scales Up

The participation of multinational firms highlights India’s growing appeal as an alternative manufacturing base. For companies like Samsung and Foxconn, expanding component production locally can improve cost efficiency and align with government requirements tied to incentives. For domestic conglomerates such as Tata, the approvals reinforce ambitions to become integrated players across electronics manufacturing and advanced technology.

As demand for smartphones, consumer electronics, and connected devices continues to rise globally, India’s strategy is to move up the value chain and capture a larger share of component manufacturing rather than remaining focused solely on assembly.

Outlook for India’s Electronics Ambitions

While execution risks remain, including infrastructure bottlenecks and skill development challenges, the scale of the newly approved projects signals strong momentum. If successfully implemented, the investments could significantly narrow India’s electronics trade deficit and enhance its role in global supply networks.

The approvals also reflect growing confidence among policymakers that targeted subsidies can catalyze private investment at scale. As India balances fiscal discipline with industrial policy, the performance of these projects will be closely watched as a benchmark for the next phase of the country’s manufacturing ambitions.