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Electronics Companies: It added that the component ecosystem would take at least 2-3 years to start commercial production. Once it takes off, domestic manufacturing of components should be able to cater to 5-10% of global demand in 6-7 years, ICEA said, adding international firms should be invited to get a major share in the domestic and global component manufacturing market.
"The incentive scheme is needed to support growing demand for electronics components to the tune of $75-$80 billion by 2026, and $300 billion by 2032 to support $300 billion worth of electronics products manufacturing by 2026 and $1.2 trillion by 2032," the India Cellular & Electronics Association (ICEA), which represents top smartphone brands and manufacturing companies, said.
Smartphones have become the fourth-largest export item from India, reaching $15.6 billion in FY24 with a 42% growth. The surge in exports was mainly driven by shipments to the United States, the United Arab Emirates, the Netherlands, and the UK.
India-based Dixon Technologies reportedly will make Google's Pixel 8 smartphones starting in September following a deal signed between Taiwan-based Compal and Padget, Dixon Technologies' subsidiary.
Smartphones have been a key success story of the government's production-linked incentive scheme, helping India become the second-largest mobile phone manufacturing country, after China.