The Indian IT ministry is planning to ask the Union Cabinet for a huge money package of Rs 40,000 crore next month. This package is aimed at helping local companies make more electronic parts. If approved, the investment could begin by April 2025.
This financial plan, developed by the Ministry of Electronics and Information Technology (MeitY), will focus not on semiconductors, but on other electronic components like circuit boards and batteries. The government wants to encourage more local production and to connect Indian companies with global electronics manufacturing.
After talking with businesses, MeitY is ready to submit a proposal in December. If the Cabinet gives the green light, companies will have 90 days to prepare for investments. Government officials are eager to get approval soon, so everything is set to start on April 1.
India’s need for electronic parts is expected to rise sharply to $240 billion by 2030. The goal is to increase local production from the current 15-18% to about 35-40% in the next five years, and even reach 50% eventually.
The total investment under this scheme could reach around Rs 82,000 crore, generating components worth between Rs 1.9 lakh crore to Rs 2.0 lakh crore. There are existing programs helping local assembly of electronic products, and the new plan is expected to focus on making phones and IT devices.
Discussions are ongoing about how exactly the support will look—like whether there will be subsidies for working capital or incentives linked to hiring more staff. Companies are hoping for quick approvals, especially for partnerships with firms from countries like Taiwan and China. Local businesses are also encouraging suppliers to invest in India.
The focus of the new scheme is to boost local production of vital components used in mobile phones and laptops. Right now, India heavily relies on imports for many of these important parts. It’s crucial that the country starts making more of its own products to avoid the risks associated with importing.
