The government has approved 22 new proposals under the Electronics Components Manufacturing Scheme (ECMS), involving investments totalling nearly ₹42,000 Crores from major companies including Samsung, Foxconn, TATA Electronics, and Dixon.

This third tranche of approvals marks a significant step in bolstering domestic electronics manufacturing capabilities.

These investments are projected to generate domestic production worth ₹2.6 lakh crore over the coming years, substantially reducing India's reliance on imported components, particularly from China. While overall electronics assembly, such as mobile phones and computers, has grown, the lack of local components has sustained high import levels until now.

The scheme targets 11 key product categories with applications across mobile manufacturing, telecom, consumer electronics, strategic electronics, automotive, and IT hardware. These include bare components like printed circuit boards (PCBs), capacitors, connectors, enclosures, and lithium-ion cells; sub-assemblies such as camera modules, display modules, and optical transceivers; and supply-chain items including aluminium extrusion, anode material, and laminates.

Among the approved companies are India Circuits Private Limited and AT&S India for PCBs, Deki Electronics and TDK India for capacitors, Amphenol for connectors, Yuzhan Technology, Motherson, and Tata Electronics for enclosures, and ATL Battery Technology for lithium-ion cells. Other notable participants include Dixon Electroconnect, Samsung Display Noida, Hindalco Industries, and Foxconn's Indian unit.

Production facilities will be distributed across multiple states to promote balanced regional development. Maharashtra and Karnataka will each host four facilities, while Tamil Nadu, Andhra Pradesh, Uttar Pradesh, and Haryana will have three apiece, with additional units in Madhya Pradesh and others.

This latest approval follows two prior tranches: seven projects worth ₹5,532 crore in the first and 17 proposals entailing ₹7,172 crore in the second, bringing the total approved under ECMS to 46 projects across 11 states. Cumulatively, these initiatives are expected to attract substantial investments, create thousands of direct jobs—nearly 34,000 from the third tranche alone—and foster high-skill employment.

Launched by the Ministry of Electronics and Information Technology (MeitY) with a budget outlay of around ₹22,919 crore over six years from FY 2025-26 to FY 2031-32, ECMS offers incentives like turnover-linked, capex-linked, and hybrid models to encourage value addition and supply-chain resilience. It complements earlier production-linked incentive (PLI) schemes by focusing on components rather than final assembly.

Union Minister Ashwini Vaishnaw highlighted the government's reforms, enabling policies, and swift project execution as key drivers behind these investments, with visible results across sectors. He noted that future incentives will emphasise local sourcing, design capabilities, and quality standards like Six Sigma.

In parallel, Vaishnaw announced that four semiconductor plants—Kaynes Semicon, CG Power (CG Semi), Micron Technology, and Tata Electronics—will commence commercial production in 2026, transitioning from pilot phases. Kaynes and CG Semi, having started pilots last year, will lead, followed by Micron next month and Tata's Assam facility by year-end, enabling sourcing by top automobile and telecom firms.

These developments position India as an emerging rival to China in electronics supply chains, with companies like Apple ramping up iPhone production through local vendors such as Foxconn, Tata Electronics, ATL Battery Tech, Hindalco, and Motherson. The ECMS is poised to drive exports in items like PCBs, laminates, lithium-ion cells, enclosures, and optical transceivers while meeting significant domestic demand.

Agencies