India Accelerates Electronics Manufacturing with ₹41,863 Crore Investment

In a significant move to strengthen India’s electronics ecosystem, the Ministry of Electronics and Information Technology (MeitY) has approved 22 new projects under the Electronics Components Manufacturing Scheme (ECMS), with a combined investment of ₹41,863 crore. The approval is expected to generate production worth ₹2.58 lakh crore and create more than 33,700 direct jobs, reinforcing India’s position as an emerging hub for electronics manufacturing.

The approvals mark the third tranche under the Electronics Components Manufacturing Scheme (ECMS). | News18

A Strategic Push for Self-Reliance

The Electronics Components Manufacturing Scheme, launched in April 2025, is India’s first dedicated initiative to promote domestic production of electronic components. The scheme aims to reduce dependence on imports for critical components, including printed circuit boards (PCBs), capacitors, connectors, lithium-ion cells, and display modules, while encouraging investment in upstream materials and sub-assemblies. By incentivizing domestic production, the government hopes to integrate Indian manufacturers into global value chains and enhance local value addition across the electronics sector.

Scope and Impact of the Approved Projects

The 22 approved projects are part of the third tranche under ECMS, bringing the total sanctioned projects to 46. These projects cover 11 product segments ranging from mobile devices and consumer electronics to automotive systems, IT hardware, and strategic electronics. Companies benefiting from these approvals include both Indian and international players, such as Dixon Technologies, Samsung Display Noida, Foxconn’s Yuzhan Technology India, Hindalco Industries, Tata Electronics, and Amara Raja-ATL.

Geographically, the projects span eight states, including Andhra Pradesh, Maharashtra, Karnataka, Tamil Nadu, Uttar Pradesh, Haryana, Madhya Pradesh, and Rajasthan. This distribution aligns with the government’s objective of ensuring balanced industrial growth across the country, while tapping into regional manufacturing strengths.

Economic and Industrial Significance

Industry experts see this batch of approvals as a decisive step toward moving India higher up the electronics manufacturing value chain. By producing core components domestically, India can reduce reliance on imports, particularly from East Asia, and develop a more resilient supply chain for strategic sectors such as telecommunications, IT hardware, automotive electronics, and consumer devices.

The scheme has also attracted significant investor interest, with more than 249 applications amounting to over ₹1.15 lakh crore in proposed investment. Analysts note that the approvals signal growing confidence in India’s policy environment and long-term prospects for electronics manufacturing. While challenges remain — such as workforce skill development and supply-chain readiness — the foundation is now being laid for a substantial expansion of domestic electronics capabilities.

Policy Framework and Incentives

ECMS forms part of India’s broader Production-Linked Incentive (PLI) ecosystem, which has been rolled out across sectors including auto components, pharmaceuticals, and semiconductors. Under the scheme, eligible projects receive incentives linked to incremental sales, capital expenditure, and employment generation, ensuring measurable benefits for both companies and the national economy. Combined with state-level support measures in several regions, these incentives make India an increasingly attractive destination for electronics component manufacturers.

The MGMM Outlook

India’s electronics manufacturing sector is entering a transformative phase with the approval of 22 new projects under the Electronics Components Manufacturing Scheme (ECMS), attracting a total investment of ₹41,863 crore. These projects are expected to generate production worth ₹2.58 lakh crore and create over 33,700 direct jobs, reflecting the government’s strategic push toward self-reliance in critical electronic components. By incentivizing domestic production of items such as printed circuit boards, lithium-ion cells, and display modules, India is reducing its dependence on imports while integrating local manufacturers into global value chains. Major companies including Dixon Technologies, Samsung Display Noida, Foxconn’s Yuzhan Technology India, Tata Electronics, and Hindalco Industries are among the beneficiaries, signaling strong confidence in the country’s policy framework and growth prospects.

The approved projects cover 11 product segments and are spread across eight states, ensuring balanced industrial growth and tapping into regional manufacturing strengths. The ECMS aligns with India’s broader Production-Linked Incentive (PLI) ecosystem, offering incentives tied to sales, capital expenditure, and employment generation, complemented by state-level support. Analysts highlight that by building domestic capabilities in electronics, India can create a more resilient supply chain for sectors such as telecommunications, IT hardware, automotive electronics, and consumer devices. While challenges like workforce development and supply-chain readiness remain, these initiatives establish a strong foundation for India to become a globally competitive electronics hub, attracting both domestic and international investments.

(Sources: News18, Business Standard, Moneycontrol)