The Indian government has sanctioned an investment totaling $751.21 million following the evaluation of 29 proposals, as announced by the Electronics and Information Technology Ministry. This move is part of a broader strategy to enhance domestic manufacturing capabilities, reduce reliance on imports, and fortify supply chains within the electronics sector.
Several incentive programs have been introduced to attract both international and local investors, aiming to significantly expand the country’s electronics manufacturing base. The domestic electronics market is currently valued at $125 billion for the fiscal year ending March 2025, with projections to grow to $500 billion by 2031.
The approved proposals span a diverse range of segments including mobile phone production, consumer electronics, telecommunications, automotive components, and hardware products. Notably, a division of Dixon Technologies received approval to manufacture display modules, while Lohum Cleantech was authorized to produce rare-earth permanent magnets.
Lohum Cleantech’s project marks a milestone as India’s first initiative to manufacture rare-earth permanent magnets directly from rare-earth oxide. This development is expected to enhance the country’s self-sufficiency in critical electronic components.
In a significant development, the government is preparing new incentive schemes for mobile phone manufacturing, as the current flagship program supporting this rapidly growing sector is set to expire in March. These initiatives are anticipated to benefit major companies such as Apple and Samsung, further strengthening India’s position in the global electronics market.
