Centre Plans Higher Local Electronics Parts-Making

The move could reduce dependence on imports and help save foreign exchange for India

- Shouvik Das

The central government is weighing some proposals from consultants and industry veterans to increase domestic manufacturing of electronic components, especially smartphones, according to three people aware of the matter who spoke on condition of anonymity.

Such a move would reduce dependence on imports and help save foreign exchange for the country, these people added, particularly in light of the reciprocal tariffs announced last week by the US administration. Most components for making smartphones, including for Apple's iPhone, are still imported.

One proposal has advised the ministry of electronics and information technology (Meity) to start with deploying warehouses with special import duty privileges to ensure that companies build inventories of electronics sub-components and raw materials. Such stockpiles would help India expedite electronics component engineering domestically, which in turn will increase the net value of electronics items made in the country.

The people cited above said that a framework to ramp-up local components manufacturing is expected in the coming weeks. Meity did not immediately respond to Mint's request for a comment.