Business & Economy
Wipro, Micromax Join India’s Electronics Parts Push
Can incentives pull more upstream manufacturing into India?
Can incentives pull more upstream manufacturing into India?
India’s electronics push is shifting from assembly to the harder task of building a , because the country still relies heavily on imported components even as grows. The latest approvals under the show the government using incentives to pull investment upstream, with the aim of cutting , creating jobs, and expanding long-term .
The approved projects cover items such as , mobile enclosures, , , and other that feed finished devices. The immediate significance is lower import dependence, more local jobs, and a stronger base for future electronics manufacturing capacity if the projects are built on schedule.
The approvals included , Micromax-linked , and , alongside other manufacturers. Their participation shows the scheme is drawing in large groups from different parts of industry, not only pure electronics firms, and expanding the range of domestic component capacity.
The government approved 31 new worth , taking the cumulative total across to 106 projects and more than ₹69,000 crore in investments. The latest round is the clearest sign yet that the is pulling capital into upstream parts manufacturing rather than only final assembly.
Official updates reiterated that the was meant to strengthen India’s and expand . By this stage, the policy had clearly become part of the wider rather than a one-off electronics measure.
By mid-2025, companies were submitting and preparing proposals under India’s for upstream inputs such as PCBs, passive components, and .
The opened in May 2025, giving companies a route to seek support for component plants and related manufacturing lines. The move translated the policy shift into a live pipeline for firms willing to invest in the electronics ecosystem.
the scheme in April 2025 and set out its incentive structure, including , , and . The design showed a more targeted effort to reward production of components and supply-chain inputs, not just final-device assembly.
The approved the with an , explicitly designed to make India more in the electronics supply chain. The scheme was built to support bare components, sub-assemblies, selected bare components, and capital equipment, marking a shift from assembly incentives toward deeper localization.
As phone and electronics assembly expanded, policymakers and industry increasingly focused on the gap underneath it, the lack of domestic components, enclosures, , , and other . The central problem became that India was assembling more electronics, while key parts still came from abroad.
India’s broader manufacturing drive began pulling into the country, with policy support aimed at attracting final-device plants and related investment. That early phase helped build production capacity, but it still left India dependent on imported parts and sub-assemblies for much of the value chain.