India's electronics cos like Dixon, Optiemus, Bhagwati gear up for fresh investment in camera, display modules

Dixon has already begun work on manufacturing cameras, display modules, and mechanical components under the scheme. Its display module manufacturing, in partnership with China’s HKC, is set to begin by the third quarter of the next fiscal year, and the company is also exploring a joint venture with a global partner for camera module production.

“We are quite positive about this scheme. We need to create a strong component ecosystem because finished product manufacturing has already achieved a certain scale. To make India the next hub for exports, we need a component ecosystem and enhanced value addition,” said Sunil Vachani, Chairman of Dixon Technologies.

“Now we can go full steam ahead and ensure the rapid rollout of these new factories. We want to assure the government and investors that we will commence production very soon,” he said, adding the company is investing around Rs 1,000 crore on FY26 for camera and display module manufacturing.

Bhagwati Products Limited, the electronics manufacturing arm of Gurgaon-based Micromax Informatics, is also in advanced talks with global supply chain players to establish joint ventures. “As a brand, we are actively pursuing joint ventures within global value chains,” said Rahul Sharma, Co-Founder of Bhagwati Products Limited. “The scheme will play a crucial role in integrating these value chains into India,” he said, adding that investment will be around Rs 1000 crore for camera and display module manufacturing.

A. Gururaj, Managing Director of Optiemus Electronics, emphasized the scheme’s potential to improve India’s trade balance and create employment opportunities. “We are looking to start manufacturing display modules, camera modules, and mechanical components in collaboration with leading global suppliers,” he stated.

Timeline and Industry Outlook

Industry executives estimate that the policy will take 12-24 months to integrate India into global electronics value chains fully. While component assembly may happen faster, the qualification process for core component technologies is expected to take twenty-four months or more.

“The qualification process for components follows a capital cycle. Once capital expenditure is implemented and plants are commissioned, qualification begins, and that can be lengthy,” said Josh Foulger, President at Zetwerk. “Component technologies typically take around 24 months to qualify, though some technologies move faster."

Zetwerk has already earmarked Rs 1,000 crore for expansion into component manufacturing and is actively pursuing global partnerships to leverage the scheme.

As India scales its production to reach $500 billion to deepen the electronics manufacturing ecosystem and increase domestic value addition, building a sustainable and competitive electronics manufacturing ecosystem is critical.

The new scheme will catalyze the industry to deepen integration with Global Value Chains (GVCs), establish large-scale manufacturing units, and enable significant employment generation,” said Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA).

ICEA represents major players such as Foxconn, Dixon, Apple, Lava, and Xiaomi.

India has witnessed unprecedented growth in the mobile and electronics sector, with domestic production increasing by 400% to an estimated $135-140 billion since FY15, according to ICEA estimates. Currently, India manufactures $120 billion worth of electronics and is targeting a $500 billion electronics economy by 2030.

A key challenge in this growth trajectory has been low-value addition. India continues to import key components such as printed circuit boards (PCBs), passive components (capacitors, inductors, resistors), and display modules, which constitute 15-20% of the Bill of Materials (BoM) for electronic products, in addition to semiconductors.

“The component scheme will accelerate the Make in India initiative, driving higher value addition and strengthening the domestic supply chain with import reductions. Alongside the semiconductor manufacturing ramp-up and the existing PLI for electronics manufacturing, these initiatives will enhance India's global competitiveness,” said Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA).

Government Backing and Incentives

On Friday, the Union Cabinet approved a $2.7 billion (Rs 22,919 crore) initiative to boost local electronics component manufacturing in India. The plan aims to encourage domestic and foreign companies to establish manufacturing facilities, offering subsidies of up to 50% of project costs.

This six-year incentive program seeks to attract $7 billion (Rs 59,350 crore) in investments to produce electronics components valued at $53.5 billion. Key focus areas include the sub-assembly of display and camera modules, printed circuit boards, lithium-ion battery cells, and enclosures for mobile and electronics hardware.

Applicants will be assigned turnover targets to determine their incentive allocation, aligning with India’s semiconductor incentive framework. Additionally, the scheme aims to localize the production of components and capital goods used in manufacturing, with the government providing capital expenditure-based incentives—though at a rate lower than 50% of the company's expenditure.

With the Indian government aggressively pushing for self-reliance in electronics manufacturing, industry players are gearing up to leverage this initiative. If successfully implemented, the Component Manufacturing Scheme could significantly boost India’s role in global electronics supply chains, reduce import dependency, and drive large-scale employment generation.