Can India build a local electronics supply chain free from Chinese firms?

The good news is that the government is now willing to reassess its policy, as it starts discussions with stakeholders for a new PLI scheme specifically for electronic compon­ents

In 2020, amid growing tensions on the border, the Indian government tweaked its policy governing foreign direct investment (FDI), in effect closing the doors on Chinese companies in electronics manufacturing. However, this did not lead to rapid localisation.

For instance, value addition in mobile de­vices has been low — 12 to 20 per cent — in the first three years of the production-lin­ked incentive (PLI) scheme, which is half of the target of 40 per cent to be achieved by the end of FY26. Similarly, 95 per cent of the laptops are imported, mostly from China.

That raises the question, can India