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New Mobile Phone Scheme Accelerates Tamil Nadu's Component Manufacturing
Tamil Nadu, India's top electronics exporter, expects the ₹62,500-crore MPMS to attract component makers and deepen local sourcing. The scheme targets a shift from assembly to value-added production.
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Tamil Nadu, India's top electronics exporter at $19.9 billion, is set to benefit from the new ₹62,500-crore Mobile Phone Manufacturing Promotion Scheme, announced Wednesday. The scheme offers up to 1.5 per cent in additional incentives for sourcing key components and sub-assemblies locally, a move that state officials and industry executives said would help the state deepen its electronics supply chain.
“We can support existing manufacturers in increasing local sourcing by helping develop a strong supplier ecosystem within the State,” S Vijayakumar, Tamil Nadu Industries Secretary, told businessline. The state already hosts major manufacturers, and the incentives should encourage expansions and attract new global players, he added.
Sasikumar Gendham, President of the Electronic Industries Association (ELCINA), called the scheme “particularly excellent for Tamil Nadu.” The additional push for domestic sourcing will spur more component manufacturing in the state, which is already among the top beneficiaries of the Electronics Component Manufacturing Scheme, he said.