With the new ECMS scheme, Dixon and Tata look to power homegrown electronics onto the world stage. Tata has reportedly invested ₹20 billion.
Dixon Technologies and Tata Electronics will begin manufacturing electronic components, the former starting with products for their own use before expanding to global markets. The move comes as part of the government’s Electronics Component Manufacturing Scheme (ECMS), which aims to boost local production and exports.
According to a report by The Economic Times, Tata Electronics is preparing to invest around ₹20 billion under the ₹229.19 billion scheme. This initiative is expected to attract ₹593.5 billion in total investment and create nearly 91,600 jobs.
Dixon’s CEO, Atul Lal, confirmed that the company has launched the production of display modules. It is also assessing other component categories such as camera modules, lithium-ion batteries, and mechanical enclosures. Lal stated that the initial focus will be captive use, followed by scaling up for export.
Dixon currently manufactures smartphones for brands like Motorola and Xiaomi, and has partnered with vivo and HP to expand mobile and laptop production.
The ECMS focuses on non-semiconductor electronics components. Companies must establish design houses and meet Six Sigma quality standards to qualify for incentives.
Lal, who also heads the Electronic Industries Association of India (ELCINA), a key industry body, welcomed the government’s quality and design requirements. He said internal discussions are underway to align with these standards.
Ashok Chandak of the India Electronics and Semiconductor Association (IESA) supported the design house mandate but noted that achieving Six Sigma quality could be tough for smaller firms.
Pankaj Mohindroo of the India Cellular and Electronics Association (ICEA) added that the scheme will increase value addition within India and must not be underestimated by financial analysts. He emphasised that in the long term, the policy will drive sustainable manufacturing growth.
