Archive · 12 Sep 2026
India Pushes Beyond Assembly Into Domestic Electronics Components
India already assembles almost all of the mobile phones sold in the country.
However, many important parts, such as screens, camera sensors and circuit boards, are still imported.
This means India does a lot of assembly but creates less value from each phone.
The government wants companies to make more of these parts inside India.
A scheme called ECMS is offering support for factories that produce components and materials.
Another scheme aims to help Indian companies build their own mobile brands and designs.
Companies from India and other countries are investing in batteries, displays, cameras and printed circuit boards.
Analysts believe component makers may benefit more than phone assemblers from this change.
India hopes to become a larger electronics manufacturing and export hub by 2030–31.
India’s electronics production rose from Rs 5.5 lakh crore in 2021 to Rs 12.1 lakh crore in 2026, while exports increased nearly fivefold.
Nearly 99% of mobile phones sold in India are assembled domestically, but local value addition remains below 15%.
The Electronics Components and Materials Scheme aims to increase locally made mobile components from below 20% of bill of materials to about 50% by 2032.
Companies including Foxconn, Tata Electronics, Dixon Technologies, Syrma SGS and Kaynes Technology are investing in displays, batteries, cameras, PCBs and other components.
The government’s broader target is $500 thousand crore in electronics production by 2030–31, including about $150 thousand crore from components.
- Who
- The Government of India, electronics manufacturers, global companies and component suppliers are involved.
- What
- India is shifting from primarily assembling electronics to manufacturing more components domestically.
- When
- The shift builds on schemes launched from 2021 onward, with ECMS operating from 2026 to 2032 and broader production goals set for 2030–31.
- Where
- The manufacturing expansion is taking place in India, with products exported to markets including the United States.
- Why
- The effort aims to increase domestic value addition, reduce import dependence, deepen supply chains and support Indian electronics brands.
Localization Optimists
Execution Caution
Component manufacturing opportunity
Localization Optimists
Government incentives, foreign partnerships and new investments could substantially increase domestic production of displays, batteries, cameras and printed circuit boards.
Execution Caution
Analysts cite high capital requirements, long gestation periods, limited technology transfer and execution risks as continuing barriers.
Investment preferences
Localization Optimists
The report says backward integration could make component manufacturers the main beneficiaries of the next phase of electronics growth.
Execution Caution
Dixon Technologies and Syrma SGS received Hold ratings because of valuation concerns and execution risks, while the report rated Kaynes Technology Buy.
Assembly versus value creation
Localization Optimists
India’s large assembly base and rising smartphone exports provide a foundation for deeper manufacturing and supply-chain development.
Execution Caution
Despite nearly universal domestic assembly of phones sold in India, most critical components remain imported and domestic value addition is still below 15%.
- Electronics production
- Rose from Rs 5.5 lakh crore in 2021 to Rs 12.1 lakh crore in 2026.
- Mobile assembly
- Nearly 99% of mobile phones sold in India are assembled domestically.
- Current value addition
- Domestic value addition in mobile phones remains below 15%, while locally made components account for less than 20% of the bill of materials.
- ECMS target
- The Electronics Components and Materials Scheme aims to raise local component content to about 50% of the bill of materials by 2032.
- ECMS approvals
- According to the report, 106 projects have been approved, with committed capital expenditure of around Rs 695 thousand crore.
- PCB imports
- India imports an estimated 85–90% of its printed circuit board supply.
- National production goal
- The Ministry of Electronics and IT targets $500 thousand crore in electronics production by 2030–31, including about $150 thousand crore from components.