Leading Indian electronics manufacturers—Dixon, Optiemus, Zetwerk, and Bhagwati—are in discussions with global component suppliers to form joint ventures and strategic alliances aimed at bringing advanced technology to India. Each company is planning investments of ₹800-₹1,000 crore to enhance local production capacity.
Industry leaders believe the recently sanctioned ₹22,919 crore Component Manufacturing Scheme will play a crucial role in reducing dependence on imports and integrating India into global supply chains. As companies prepare to apply for approvals, they highlight that this long-awaited initiative will drive domestic value addition (DVA) and attract both global and domestic investors.
While awaiting the official scheme notification, companies are finalizing their applications. Dixon has already started manufacturing cameras, display modules, and mechanical components under the scheme. Its display module production, in collaboration with China’s HKC, is set to launch by the third quarter of the next fiscal year. Dixon is also exploring a global partnership for camera module production.
“We are optimistic about this scheme. While finished product manufacturing has scaled up, a robust component ecosystem is essential to make India a global export hub,” said Sunil Vachani, Chairman of Dixon Technologies. He emphasized that Dixon is investing ₹1,000 crore in FY26 for camera and display module production.
Similarly, Bhagwati Products Limited, the electronics manufacturing arm of Micromax Informatics, is actively negotiating joint ventures with global suppliers. Co-founder Rahul Sharma stated, “We are committed to integrating into global value chains, and this scheme will be a game-changer.” The company is investing ₹1,000 crore in manufacturing camera and display modules.
A. Gururaj, Managing Director of Optiemus Electronics, highlighted the scheme’s potential to improve India’s trade balance and create jobs. “We plan to manufacture display modules, camera modules, and mechanical components in collaboration with global suppliers,” he said.
Industry Outlook and Timeline
Executives estimate that it will take 12-24 months for India to fully integrate into global electronics value chains. While assembling components may happen quickly, the qualification process for core technologies could take four months or more.
“The qualification process follows a capital cycle—once capital is invested and plants are commissioned, approvals begin, and this can take time,” said Josh Foulger, President of Zetwerk. “Assemblies may qualify faster, but component technologies require at least four months.”
Zetwerk has allocated ₹1,000 crore for expansion into component manufacturing and is actively seeking global partnerships.
As India aims to grow its electronics manufacturing sector to $500 billion, developing a sustainable and competitive component ecosystem is essential.
“The new scheme will strengthen integration with Global Value Chains (GVCs), establish large-scale production units, and create significant employment opportunities,” said Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA), which represents major players like Foxconn, Dixon, Apple, Lava, and Xiaomi.
India has witnessed remarkable growth in its electronics sector, with domestic production increasing by 400% to an estimated $135-140 billion since FY15. Currently, India produces $120 billion worth of electronics, with a goal of reaching $500 billion by 2030.
However, low-value addition remains a key challenge. India still imports critical components like printed circuit boards (PCBs), capacitors, resistors, inductors, and display modules, which make up 15-20% of the Bill of Materials (BoM) for electronic products, alongside semiconductors
The Component Manufacturing Scheme will accelerate ‘Make in India,’ drive higher value addition, and strengthen domestic supply chains while reducing imports. Along with semiconductor initiatives and existing PLI schemes, this will enhance India’s global competitiveness,” said Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA).
Government Support and Incentives
The Union Cabinet has approved a ₹22,919 crore ($2.7 billion) initiative to boost local electronics component manufacturing. The scheme aims to encourage both domestic and foreign companies to set up production facilities, offering subsidies covering up to 50% of project costs.
The six-year incentive program seeks to attract ₹59,350 crore ($7 billion) in investments, targeting component production worth $53.5 billion. Key focus areas include sub-assembly of display and camera modules, PCBs, lithium-ion battery cells, and enclosures for electronics hardware.
Applicants will have turnover-based incentive allocations, aligning with India’s semiconductor incentive framework. Additionally, the scheme promotes localizing the production of components and capital goods used in electronics manufacturing, with capital expenditure-based incentives—though lower than 50% of a company’s expenditure.
With the government pushing for self-reliance in electronics, industry leaders are gearing up to capitalize on this initiative. If successfully implemented, the Component Manufacturing Scheme could significantly enhance India’s role in global electronics supply chains, reduce import dependency, and generate large-scale employment.
