India is dependent on China for electronic components. Now it's trying to change that

In a determination aimed astatine cutting India's import dependency for physics components, the authorities has approved the archetypal acceptable of projects nether its $2.7 cardinal program, yet different measurement successful its stated self-sufficiency ngo against a trying commercialized environment.

Electronic goods were India's 3rd largest exports successful fiscal twelvemonth 2025, having jumped eight-fold implicit the past 10 years, to $38.56 cardinal successful the twelvemonth ended March 2025, according to authorities data. But those were astir offset by imports of physics components worthy $36.8 billion.

Most of the physics constituent imports came from China (nearly 40%), followed by Hong Kong (over (16%) successful the archetypal fractional of fiscal twelvemonth 2025.

At a clip erstwhile some the U.S. and China person resorted to export controls of captious goods specified arsenic uncommon earths and high-end tech, India has been doubling down connected its efforts to unafraid its aboriginal by promoting schemes aimed astatine gaining self-sufficiency.

The 7 projects approved connected Monday nether the Electronics Component Manufacturing Scheme volition person grants worthy 55.32 cardinal rupees ($626 million).

They volition assistance acceptable up section manufacturing of physics components specified camera modules, multi-layered printed circuit boards and precocious high-density PCBs utilized successful smartphones, wearable devices, aesculapian and aerospace components, according to the government.

The ECMS has received 249 applications from section and planetary companies committing concern of 1.15 trillion rupees (nearly $14 billion) successful projected investments.

India's Minister for Electronics & IT Ashwini Vaishnaw said that "20% of our home request of PCBs and 15% of Camera Module sub-assembly will beryllium met done accumulation from these [seven] plants," adding that astir 60% of full production from these plants volition beryllium exported.

The country's electronics components' marketplace is projected to scope $150 cardinal by 2030, according to EY estimates, with wide electronics marketplace — components and finished goods — acceptable to standard to $500 cardinal arsenic per the government. Currently the planetary electronics marketplace is valued astatine $1.8 trillion, 60% of which is dominated by China, according to information provided by EY.

India is successful a unsocial presumption arsenic it has a increasing user basal and is seen arsenic a manufacturing alternate to China arsenic companies diversify proviso chains, experts said, adding that by mounting up plants successful India, planetary electronics companies tin pat into the section demand, portion exporting from the aforesaid locations.

A lawsuit successful constituent is Apple whose exports from India roseate 42% twelvemonth connected twelvemonth to $12.8 cardinal successful 2024 and the institution is shifting more accumulation to India arsenic it moves distant from China. In the 4th ended September 2025, India overtook China to go the apical smartphone exporter to the U.S., with a 240% leap successful smartphone manufacturing volumes.

According to the Indian government, the state has go the world's 2nd largest mobile telephone shaper globally.

The ECMS shows that the authorities is recognizing "that a specified assembly ecosystem cannot prolong itself without a beardown home constituent manufacturing base," said Kunal Chaudhary, spouse and person of Inbound Investment Group astatine EY India.

The ECMS volition fortify the home constituent ecosystem, trim import dependence, and India's heighten planetary competitiveness, helium added.

Ashok Chandak, president of India Electronics and Semiconductor Association, said the strategy volition accelerate the country's emergence arsenic a planetary hub for precocious electronics and semiconductors and astatine the aforesaid clip trim import dependence."