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OPINION: Budget 2025 Can Help India Become A Global Hub For Mobile Accessories Manufacturing. Here’s How

The year ahead will bring the blueprint for ‘Make in India’ in the electronics manufacturing sector.

By Ashok Rajpal

The Union Budget of 2025 is poised to pave the way for India to emerge as a global hub for mobile essentials and electronics manufacturing,  establishing the country as a powerhouse in this rapidly growing industry. 

India is already making significant strides in the mobile accessories sector, and with strengthening fiscal policies and Government support, we can move towards greater self-reliance, competitiveness, and innovation in the global market. A key catalyst is the allocation of sufficient funds to in-house semiconductor manufacturing in the annual budgets, which will directly impact our electronics production. 

Focus On Semiconductors

India’s growing mobile accessories industry heavily relies on semiconductors, which are integral to almost every device — whether it’s a power bank, charger, or Bluetooth earphones. To reduce the country’s dependency on imported semiconductors, the Indian Government is set to bolster its domestic semiconductor ecosystem. 

The efforts are apparent from the 2024-25 Union Budget, where we saw a 52 per cent increase in the Ministry of Electronics and Information Technology’s (MeitY) budget. Moreover, a substantial Rs 6,903 crore of this budget was reserved for the semiconductor development programme to enable India to reduce its dependency on imported semiconductors. 

This is a critical development for mobile accessories manufacturing, as semiconductors form the backbone of nearly all mobile devices, including power banks, chargers, and other accessories.

What About AI?

The 2024 Budget did not overlook the potential of artificial intelligence (AI) in improving the technological aspects of mobile phones and other gadgets. The IndiaAI mission works alongside the semiconductor strategy. 

The aim is to build AI-powered gadgets, which will in turn push the demand for mobile essentials able to sustain these gadgets. Indian companies will have the opportunity to leverage these innovations to create products that are not only cost-effective but also smarter, adding immense value to consumers’ daily lives and the country’s financial standing.

The expectations from the upcoming budget highlight lesser reliance on foreign electronics components, including critical parts like printed circuit boards (PCBs), and promote self-sufficiency through indigenised semiconductor plants. 

By focusing on enhancing domestic manufacturing capacities for essential components, India can become less dependent on imports and flourish on itself. For mobile accessories manufacturers, this is a golden opportunity to access high-quality, affordable components locally so that they can turn to the production of more competitive and innovative products. 

The push for a self-reliant electronics ecosystem will also create a more stable supply chain and shield us from the volatility of global trade. It’s been speculated that with tax incentives, improved regulatory frameworks, and a greater focus on R&D, foreign companies will be encouraged to set up manufacturing units in India. This will give our economy a jump boost and help to create employment for our people. 

These necessary investments will also make India more competitive internationally and help its local players scale operations and meet the growing global demand for high-quality mobile accessories. 

Nurturing Talent

To top it all off, the ongoing skill development programme initiatives by the Government will help build a highly skilled workforce capable of supporting the electronics manufacturing infrastructure. Working on talent development is a commendable move on our part as it ensures that the industry is well-equipped to take on the challenges of an increasingly tech-driven world.

The year ahead will bring the blueprint for ‘Make in India’ in the electronics manufacturing sector. It is truly an exciting time to be part of this rapidly evolving industry as India moves toward becoming a leader in the global mobile accessories market. We know that a unique opportunity is waiting for us to seize, and when we do, the scattered pieces of our puzzle will come together in unison under one motto — Make in India.

(The author is the Managing Director, Ambrane)

Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd.

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