India has taken a major step forward in strengthening its electronics manufacturing ecosystem with the approval of projects worth 418.63 billion rupees (about $4.64 billion) under the Electronics Component Manufacturing Scheme (ECMS), the Ministry of Electronics and Information Technology said on Friday.
The approved projects from a diverse group of global and domestic companies are set to accelerate local production of key electronic components. This move aligns with India’s strategic plan to reduce import dependence, attract investment, expand manufacturing capacity, and build resilient supply chains.
Major Global and Domestic Players Receive Approvals
Among the companies approved for government incentives under the ECMS are some of the most influential names in the electronics value chain:
Samsung Electronics, a global technology leader in consumer electronics and mobile devices
Tata Electronics, a key domestic electronics solutions provider
Foxconn, one of the world’s largest electronics contract manufacturers
Reuters news report said these companies will receive government subsidies to manufacture a variety of electronic parts, including enclosures for mobile phones, camera sub-assemblies, and other critical components. The incentive support from the government will help reduce production costs and make local manufacturing more competitive.
The Electronics Component Manufacturing Scheme carries a total outlay of 229.19 billion rupees, and is part of a broader set of initiatives aimed at building India’s electronics industrial base.
Projects to Generate Large Scale Output and Jobs
The projects approved on Friday are spread across eight Indian states, showcasing a nationwide push to diversify and decentralize electronics production. According to the IT ministry:
The approved manufacturing projects are expected to yield output worth 2.58 trillion rupees (about 28.62 billion dollars)
The initiatives are projected to create employment opportunities for approximately 34,000 people
These figures highlight the significant economic impact of the incentives, illustrating how policy support can help catalyze industrial growth while generating new jobs in high skill and mid skill segments.
India’s Electronics Manufacturing Strategy
India has been intensifying efforts to grow its electronics manufacturing sector in recent years through a range of incentive schemes and policy measures. The goal is to transform the nation into a major global electronics hub.
In the fiscal year ending March 2025, India’s electronics manufacturing output reached 125 billion dollars, reflecting strong growth in both production and investor interest. The government has set an ambitious target of increasing this output to 500 billion dollars by fiscal year 2031, underscoring the long term vision to build self-reliance in electronics.
Key objectives of India’s electronics manufacturing push include:
Reducing reliance on imported components and finished products
Encouraging investment from global and domestic companies
Strengthening the electronics supply chain across multiple sectors
Facilitating technology transfer and higher value manufacturing
Broader Economic Implications
The approval of 418.63 billion rupees in electronics projects not only reinforces India’s position as a promising destination for electronics manufacturing, but also supports wider economic growth priorities. A robust electronics sector stimulates demand in adjacent industries such as information technology, telecommunications, consumer devices, and automotive electronics.
By promoting the local production of mobile phone parts, camera modules, and precision components, India aims to capture higher value in the electronics value chain while creating millions of indirect jobs over time.
Conclusion
India’s IT ministry announcement marks a significant milestone in the country’s strategy to boost domestic electronics manufacturing. With major global companies on board and substantial government support in place, India is making strong progress toward building a competitive, resilient electronics industry that can support future economic growth and innovation.
As the Electronics Component Manufacturing Scheme gains momentum, India is better positioned to attract further investment, expand production capabilities, and reduce its reliance on imports in a sector that is central to the digital economy.
BABURAJAN KIZHAKEDATH
