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India will donate up to $5 billion (about Rs 42,221 crore) to companies that locally make components for devices ranging from mobile phones to laptops to boost its growing industry and cut off supplies from China. India's electronics manufacturing has grown in recent times more than doubled in six years to reach $115 billion (approximately Rs. 9,710.95 billion) in 2024, reflecting the growth of mobile manufacturing by global companies such as Apple and Samsung. The company is currently the fourth largest smartphone provider worldwide. However, the sector has been criticized for its heavy reliance on imported parts from countries such as China. "The new program will promote the production of key components such as circuit boards, improve domestic value addition and deepen the local supply chain for various electronic equipment," one of the two officials said. Incentives are likely to be offered under the new plan, which will be implemented within two to three months, the people said on condition of anonymity. The plan could provide $4 billion to $5 billion in incentives to eligible global or local companies. The program, developed by India's Ministry of Electronics, identifies components eligible for incentives and is currently in its final stages.

The first official added that the finance ministry is expected to approve the final allocation for the program soon, and sources said they expect the program to be rolled out in the next two to three months. India's electronics ministry and finance ministry did not respond to requests for comment. India plans to increase electronics manufacturing to $500 billion (approximately Rs 4,222,075 billion) by fiscal 2030, with a total value of $150 billion (approximately Rs 1,266,629 billion), according to the core policy of the Indian government. It involves the manufacturing of parts. Tank Niti Aayog. India will import electronics, telecom and electrical equipment worth $89.8 billion (around Rs 7,583.4 crore) in fiscal 2024, more than half of which will come from China and Hong Kong, according to an analysis by private think tank GTRI. Pankaj Mohindroo, President, Mobile Electronics Association of India, said, "This initiative comes at a crucial time to accelerate the manufacturing of components that will help us realize our dream of global electronics manufacturing."