India’s government signed off on providing INR229.2 billion ($2.7 billion) in state subsidies to up manufacturing of electronics components, providing direct benefits to numerous sectors including telecoms and consumer devices.
The federal cabinet stated the scheme would develop a robust manufacturing ecosystem by attracting investment across the value chain, with the wider goal of increasing the nation’s share of exports in global electronic trade.
In total, India is expecting to attract investment of INR539.5 billion through the scheme from domestic and global manufacturers, creating more than 91,000 direct jobs.
The plan adds to another programme already in place for smartphone manufacturing, led by Apple and Samsung.
This scheme will specifically cover the parts used in displays, camera modules, circuit boards, as well as enclosures of smartphones and laptops.
As well as telecoms and electronics, India’s technology minister Ashini Vaishnaw said it would help the medical, automobile and power sectors. The plan will run for six years.
The chair of India’s Cellular and Electronics Association, Pankaj Mohindroo, welcomed the news, stating the plan would “expand the participation of medium and small enterprises, and increase value addition in the electronics sector”.