In a move aimed at cutting India’s import dependency for electronic components, the government has approved the first set of projects under its $2.7 billion program, yet another measure in its stated self-sufficiency mission against a trying trade environment.
Electronic goods were India’s third largest exports in fiscal year 2025, having jumped eight-fold over the last 10 years, to $38.56 billion in the year ended March 2025, according to government data. But those were nearly offset by imports of electronic components worth $36.8 billion.
Most of the electronic component imports came from China (nearly 40%), followed by Hong Kong (over (16%) in the first half of fiscal year 2025.
At a time when both the U.S. and China have resorted to export controls of critical goods such as rare earths and high-end tech, India has been doubling down on its efforts to secure its future by promoting schemes aimed at gaining self-sufficiency.
The seven projects approved on Monday under the Electronics Component Manufacturing Scheme will receive grants worth 55.32 billion rupees ($626 million).
