India's Electronic Components Market to Hit $240B by 2030, Driven by Mobiles

India's need for electronic components is expected to increase to $240 billion by 2030, up from $45.5 billion in 2023, due to the rising local manufacturing of mobile phones.Government officials stated that the goal is to raise local value addition in electronics manufacturing to 35-40% within the duration of the program, typically running for five years, and ultimately to 50% encompassing the entire non-semiconductor bill of materials, up from the current 15-18%.

The final stages of talks are being conducted by the government to prevent any delays in establishing facilities once the program is initiated. It is anticipated that the program will receive a total investment of approximately Rs 82,000 crore, aiming to produce components valued at Rs 1.9-2.0 lakh crore throughout its duration. Its purpose is to assist in the efficient production growth of cell phones and, in the future, IT equipment.

Two current schemes provide incentives for the domestic assembly of electronic products.

“There are some final discussions around what shape the support will take, whether it will be in the form of capital subsidies, or incentives on operational expenditure, or both. There is also a question of linking incentives to employment,” a second industry executive said.“The ministry is ensuring there is no pushback from the industry after the scheme is announced, like in the case of the IT hardware PLI scheme."