India’s Electronics Manufacturing Ambitions Get ₹1.15 Lakh Crore Investment Boost
The Indian government’s Electronics Component Manufacturing Scheme (ECMS), launched in April this year, has seen an overwhelming response from investors, with commitments totaling over ₹1.15 lakh crore, nearly double the original target of ₹59,350 crore, according to Information Technology (IT) minister Ashwini Vaishnaw.
Unprecedented Response to ECMS
Vaishnaw stated that the scheme has drawn ‘unprecedented applications,’ indicating that global trust in India’s electronic manufacturing capabilities is being converted into investments, production, and employment. The applications for the scheme closed on September 30, 2025, with no plans to invite further applications, except for capital equipment and components for sub-assemblies and bare components, which will remain open until April 30, 2027.
Original Targets Exceeded
The ECMS was launched with a funding of ₹22,919 crore, aimed at strengthening India’s self-reliance in the electronics supply chain. The scheme has not only exceeded its investment target but also promises to create around 1.41 lakh jobs, compared to the initial target of 91,600. The production value projected from the 249 applications received is ₹10.3 lakh crore, more than twice the scheme’s original target of ₹4.56 lakh crore.
Strong Participation from MSMEs
Vaishnaw highlighted the strong participation from medium and small manufacturing enterprises (MSMEs), with about 60% of applications coming from MSME players. This is seen as a positive sign for the growth of the Indian electronics manufacturing sector. The next phase of India’s electronics push will focus on manufacturing specialized materials used in components, with the goal of deepening the value chain in India and increasing the domestic value-added component.
Deepening the Value Chain
According to IT secretary S. Krishnan, the basic idea is to ensure that the overall domestic value-added component is substantially increased, at least double from the present. Currently, domestic value addition in India stands at 15-20% for electronic goods. The electronics ecosystem is divided into active components (semiconductors) and passive components (non-semiconductors), with the focus on developing the passive component ecosystem under the ECMS.
Applications and Investments
The applications under the ECMS scheme span various segments, including display modules, camera modules, printed circuit boards, lithium-ion cells, and enclosures for mobile and IT hardware products. The largest single-company investment commitment under the scheme is about ₹22,000 crore, although the IT ministry has declined to name the company at this stage.
Industry Response and Future Plans
Officials stated that this is the first time India has attracted investments in areas such as surface-mount device (SMD) passives, flexible printed circuit boards (PCBs), and capital equipment for electronics. The industry has also responded positively to the government’s call to invest in design capabilities and is setting up teams of varying sizes. The government is now in the process of scrutinizing the applications and has promised to fast-track approvals.
Expert Views and Future Outlook
India Cellular & Electronics Association (ICEA) chairman Pankaj Mohindroo welcomed the development, stating that the manufacturing of sub-assemblies and components will firmly be established in the country, substantially increasing India’s manufacturing prowess and global competitiveness. Mohindroo also appreciated the high participation from MSMEs, enabling large-scale employment growth.
The success of the ECMS scheme is a significant step forward for India’s electronics manufacturing ambitions, with the potential to create a substantial number of jobs and increase the country’s production value. As the Indian government continues to support and promote the electronics manufacturing sector, it will be interesting to see how the industry evolves and grows in the coming years.
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