India's Electronic Manufacturing Policy to Amplify Value by 50%

India's new electronics components manufacturing policy is set to enhance local value addition from 15-16% to 40-50%. With strategic government initiatives, India is emerging as a global manufacturing hub, notably in mobile phones, aiming for USD 500 billion exports by FY30.

India's electronic manufacturing sector is poised for a transformative shift with the introduction of a new components manufacturing policy, expected to significantly enhance local value addition. According to a report by Axis Capital, value addition could rise from a modest 15-16% to an impressive 40-50%.

The Ministry of Electronics and Information Technology (MeitY) highlighted this development with the notification of the Electronics Components Manufacturing Scheme. This initiative underscores India's commitment to becoming a global hub for electronics manufacturing. Other influential government policies, such as the Production Linked Incentive and the Phased Manufacturing Program, are driving this momentum.

Moreover, the country's mobile phone manufacturing prowess plays a crucial role in this growth story. As the world's second-largest producer, nearly all mobile phones sold in India are locally made. The government aims to leverage this strength to achieve a target of USD 500 billion in exports by the fiscal year 2030, with a significant focus on component manufacturing.

(With inputs from agencies.)