Government of India Approves 7 Projects under Electronics Components Manufacturing Scheme with Investment of Over ₹5,500 Crore

The Government of India has taken another major step toward strengthening the country’s electronics manufacturing sector. The Ministry of Electronics and Information Technology (MeitY) has approved the first batch of seven projects under the Electronics Components Manufacturing Scheme (ECMS) with an investment exceeding ₹5,500 crore.The scheme aims to establish a robust domestic supply chain and production ecosystem for electronics manufacturing, positioning India as a global electronics hub.

Main  point

¨     The move marks a major step in India’s journey from making finished products to manufacturing modules, components, materials & machineries used to manufacture them.

¨     These projects are geographically spread across Tamil Nadu (5), Andhra Pradesh (1), and Madhya Pradesh (1), promoting balanced regional development beyond metropolitan hubs.

¨     Multi-Layer Printed Circuit Boards (PCBs), HDI PCBs, Camera Modules, Copper Clad Laminates, and Polypropylene Films will be Made in India by private players.

¨     It is estimated that this phase will meet about 20% of domestic demand for PCBs and 15% for camera module sub-assemblies, with a substantial share of production aimed for export (estimated 60%).

Electronics Components Manufacturing Scheme

¨     ECMS was notified in April 2025 with a budgetary outlay of ₹22,919 crore and a duration of six years, plus an optional gestation year.

¨     It is India’s first dedicated Production Linked Incentive (PLI) scheme focused exclusively on augmenting the electronics components manufacturing sector.

¨     The scheme aims to create a self-sustaining ecosystem that attracts both domestic and global investments, increases domestic value addition (DVA), and integrates Indian players into global supply chains.

¨     A hybrid incentive model provides turnover-linked and capital expenditure (Capex)-linked incentives, combined with job creation incentives, to promote investments and employment generation.

Economic Significance

¨     Driving India’s Vision of a Product Nation: The scheme is a major step toward making India a global hub for electronics manufacturing and achieving the goal of a self-reliant “Product Nation” with complete design, production, and export capabilities.

¨     Enhancing Supply Chain Resilience: ECMS strengthens the domestic electronics supply chain, reducing dependence on imports and addressing vulnerabilities revealed during global disruptions.

¨     Building Core Manufacturing Capabilities: By promoting base material and component manufacturing, the scheme enhances technological innovation and fosters deeper integration within the electronics value chain.

¨     Promoting Regional and Inclusive Industrial Growth: The creation of high-tech manufacturing clusters under ECMS encourages balanced regional development while generating skilled employment opportunities.

¨     Enabling Strategic and Emerging Sectors: ECMS is pivotal for advancing India’s capabilities in critical sectors such as defense electronics, telecom infrastructure (including 5G), electric mobility, and renewable energy.