India Just Greenlit $4.6 Billion to Break Free From China’s Electronics Grip
India takes bold step toward self-reliance as Modi government approves massive electronics manufacturing investments from Samsung, Tata, and Foxconn
India’s electronics sector just received a massive shot in the arm. Prime Minister Narendra Modi’s administration has approved 22 manufacturing projects worth $4.6 billion, signaling the country’s serious intent to build its own supply chains and slash dependence on Chinese imports. This isn’t just about making phones—it’s about reshaping Asia’s tech landscape.
The Ministry of Electronics and Information Technology cleared these ambitious proposals under its Electronics Components Manufacturing Plan, which will generate a projected output of 2.58 trillion rupees ($28.6 billion). Major players like Samsung, Tata Electronics, and Foxconn will receive government subsidies to manufacture everything from mobile phone enclosures to camera modules and circuit boards.
Why This Matters: Breaking China’s Supply Chain Stranglehold
India has watched China dominate global electronics manufacturing for decades. Now it’s making its move. The approved projects target 11 critical product categories used across mobile phones, telecom equipment, consumer electronics, automotive systems, and IT hardware.
Samsung Electronics, Tata Electronics and Foxconn were among the companies whose projects were approved to receive government subsidies under the Electronics Component Manufacturing Scheme, which has a total budget of 229.19 billion rupees.
The focus extends beyond basic assembly work. India wants to manufacture high-value components like camera modules and display modules—the sophisticated parts that currently flow from Chinese and East Asian factories. This strategic pivot addresses a vulnerability that became painfully clear during recent global supply chain disruptions.
The Numbers Tell a Compelling Story
The scale of this initiative reveals India’s ambitions:
- $4.6 billion in approved investments
- 22 manufacturing projects across 8 states
- 34,000 jobs expected to be created
- $28.6 billion in projected output value
- 11 product categories covering multiple sectors
Electronics Minister Ashwini Vaishnaw dropped another significant announcement: four fabrication manufacturing facilities will begin commercial production this year. These include facilities operated by Micron and Tata, marking India’s entry into semiconductor manufacturing—a sector where China and East Asia have long dominated.
From $125 Billion to $500 Billion: India’s Ambitious Target
India’s electronics manufacturing sector produced goods worth $125 billion in the year to March 2025. The government’s target? Quadruple that to $500 billion by fiscal 2031.
That’s not wishful thinking. India has launched a series of incentive programs designed to attract both multinational corporations and domestic manufacturers. The Production-Linked Incentive (PLI) scheme offers substantial financial support to companies willing to set up manufacturing operations in India.
Dixon Technologies secured two major projects under this approval—one joint venture in Uttar Pradesh and an optical transceiver facility in Madhya Pradesh. The company’s involvement demonstrates how Indian firms are positioning themselves alongside global giants in this manufacturing push.
What Gets Made: The Components That Power Modern Life
The approved projects will manufacture:
- Mobile phone enclosures and camera sub-assemblies
- Display modules and printed circuit boards (PCBs)
- Telecom equipment components
- Automotive electronics parts
- IT hardware components
- High-value sub-assemblies for consumer electronics
These aren’t low-tech parts. They represent the sophisticated components that determine whether a smartphone camera excels or a telecom network runs reliably. By localizing this production, India gains more control over quality, costs, and supply chain resilience.
The China Factor: Why This Matters Globally
The government has said the projects will strengthen domestic supply chains and curb import dependence, particularly in segments where China dominates global output. This strategic shift comes as companies worldwide seek alternatives to Chinese manufacturing.
India offers several advantages: a massive domestic market, competitive labor costs, improving infrastructure, and a government committed to supporting manufacturing growth. Add political stability and democratic governance, and you understand why multinationals are taking India seriously.
The approval of these projects aligns with broader global supply chain shifts. Companies like Apple have already increased iPhone production in India. Samsung manufactures significant volumes of smartphones there. Now, the component suppliers are following.
Foxconn’s First Indian Component Investment
Foxconn’s inclusion in the approved projects marks a notable milestone—this represents the company’s first investment in India’s component manufacturing ecosystem. Known globally as Apple’s primary iPhone assembler, Foxconn’s decision to manufacture components in India validates the country’s manufacturing credentials.
The Taiwanese giant joining forces with Indian and Korean manufacturers creates a powerful coalition. It signals to other global players that India’s electronics ambitions deserve serious consideration.
Eight States, One Vision
The 22 approved projects spread across eight Indian states, creating manufacturing hubs beyond traditional industrial centers. This geographic distribution serves multiple purposes: it prevents over-concentration in single locations, creates employment opportunities across regions, and builds resilience against localized disruptions.
Each facility will focus on specific components, creating specialized expertise within different states. This clustering effect—where related industries locate near each other—typically generates innovation and efficiency gains that benefit the entire sector.
The Road Ahead: Challenges and Opportunities
India’s electronics manufacturing journey faces real challenges. Building sophisticated supply chains takes time. Training skilled workers requires investment. Competing with established Asian manufacturing hubs demands sustained government support and private sector commitment.
Yet the fundamentals look promising. India’s massive consumer base provides immediate demand for electronics products. Its young, tech-savvy workforce offers the human capital needed for advanced manufacturing. Government incentives reduce the financial risk for companies willing to invest.
The $4.6 billion approval represents just one chapter in a longer story. As these facilities come online over the next few years, they’ll create demand for supporting industries—logistics, raw materials, testing services, and more. This multiplier effect could transform India’s electronics sector far beyond the initial investment numbers.
For companies seeking to diversify away from China-heavy supply chains, India’s aggressive push into electronics manufacturing offers a compelling alternative. With government backing, major corporate participation, and clear strategic vision, India is positioning itself as a serious contender in global electronics manufacturing.
The question isn’t whether India can build an electronics manufacturing sector. The question is how quickly it can scale and how effectively it can compete with established players. These 22 approved projects will provide some answers.
FAQs About India’s Electronics Manufacturing Investment
What is India’s Electronics Component Manufacturing Plan and why is it important?
India’s Electronics Component Manufacturing Plan is a government initiative that provides subsidies and incentives to companies manufacturing electronics components locally. The plan matters because it helps India reduce dependence on imported parts from countries like China, creates thousands of jobs, and builds a more resilient domestic supply chain. With this latest $4.6 billion approval covering 22 projects, India aims to manufacture critical components like camera modules, display panels, and circuit boards that currently come from overseas suppliers.
Which major companies received approval under India’s new electronics manufacturing scheme?
Global giants Samsung Electronics, Tata Electronics, Foxconn, and Dixon Technologies secured approval for manufacturing projects under this initiative. Samsung and Tata lead the approvals, while Foxconn’s involvement marks its first investment in India’s component ecosystem. Dixon Technologies received approval for two significant projects including a joint venture in Uttar Pradesh and an optical transceiver facility in Madhya Pradesh. These companies will manufacture components used in mobile phones, telecom equipment, consumer electronics, and automotive systems.
How many jobs will India’s $4.6 billion electronics investment create?
The 22 approved electronics manufacturing projects are expected to create approximately 34,000 direct jobs across eight Indian states. These positions will span various skill levels, from assembly line workers to engineers and technical specialists. Beyond direct employment, the projects will generate additional indirect jobs in supporting sectors like logistics, raw materials supply, testing services, and facility management. The government sees job creation as a key benefit alongside reduced import dependence and stronger supply chains.
When will India’s new semiconductor fabrication facilities start production?
Electronics Minister Ashwini Vaishnaw announced that four fabrication manufacturing facilities will begin commercial production in 2026. These facilities include operations by Micron and Tata, representing India’s significant entry into semiconductor manufacturing. The fab facilities complement the broader component manufacturing push by creating domestic capabilities in a sector traditionally dominated by China and East Asian countries. This timeline marks a crucial milestone in India’s ambition to build a complete electronics manufacturing ecosystem.
