After smartphones, it is reported that India will introduce a domestic incentive policy for electronic components.

According to Chinese media reports, the Indian government is planning to extend its manufacturing localization initiative PLI (Production Linked Incentive) to the upper reaches of the electronic and information manufacturing industry in order to narrow the trade deficit after a series of policies to restrict imports and support domestic products such as smartphones.

According to the report, although the PLI policy for products such as smartphones has increased the proportion of local manufacturing and driven the export of relevant manufactured products, the electronic components needed for these terminal products still rely heavily on imports. India's trade deficit in electronic products reached US $56 billion in fiscal year 2021-2022, of which US $25.6 billion was caused by imports of electronic components.

Industry insiders told the print media that the only way to reduce the trade deficit in electronics is to strengthen the domestic industry, which is inseparable from the government's formulation of correct PLI incentives.