Backed by record ₹1.15 trillion investment proposals, India’s new electronics component scheme promises 40% local value addition, transforming the nation’s manufacturing landscape.
India’s first Electronics Component Manufacturing Scheme (ECMS) has drawn record investment proposals worth ₹1.15 trillion, more than double its target of ₹590 billion, according to the Electronic Industries Association of India (ELCINA).
The industry body noted that the surge in participation is expected to double local value addition in electronic goods manufacturing from the current 15–20% to 35–40% over the next five years.
ELCINA Secretary General Rajoo Goel described the scheme as a ‘game changer’ for India’s electronics ecosystem. He said it would help reduce the country’s dependence on imports and establish it as a global manufacturing hub for components.
The Union Minister for Electronics and IT, Ashwini Vaishnaw, announced on 2 October that the proposals received exceeded expectations, with manufacturers committing to produce components worth over ₹10.34 trillion, compared to the government’s original target of ₹4.56 trillion.
A total of 249 companies have submitted applications under the ECMS. These will be evaluated by a committee before approval. Notably, ₹358.13 billion worth of proposals came from firms involved in producing enclosures; the casings used in mobile phones, IT hardware, and other devices. Tata Electronics is among the key players in this segment, already supplying enclosures for iPhones.
Other major investment categories include flexible printed circuit boards (₹165.42 billion), electro-mechanical components (₹143.62 billion), multi-layer PCBs (₹141.5 billion), and sub-assemblies and bare components (₹92.26 billion). The scheme has also attracted interest in display modules (₹86.42 billion), camera modules (₹62.05 billion), and lithium-ion cells (₹45.16 billion).
ELCINA noted that over 100 companies together proposed investments exceeding ₹650 billion in the top three segments alone. Proposals have also been received for capital goods (₹21.03 billion), optical transceivers (₹16.45 billion), and passive components worth over ₹21 billion combined.
ELCINA President Sasi Gandhanam said the strong response reflects growing investor confidence in India’s manufacturing potential. He urged state governments to support the momentum through ease-of-doing-business measures and incentives, which could further attract investment and create jobs.
The India Cellular & Electronics Association (ICEA) Chairman, Pankaj Mohindroo, added that the ECMS is a ‘horizontal and secular’ scheme, strengthening India’s sub-assembly and component ecosystem and boosting its global competitiveness.
