7 Projects Approved Under Electronics Component Manufacturing Scheme

Syllabus: GS3/Economy

In News

• The Ministry of Electronics and Electronics Technology announced seven projects amounting to ₹5,532 crore, five of which are in Tamil Nadu, and one each in Madhya Pradesh and Andhra Pradesh, under the Electronics Component Manufacturing Scheme (ECMS).

About the Electronics Component Manufacturing Scheme (ECMS)

• The Scheme was notified in April 2025 with a total outlay of ₹22,919 crore.
• ECMS has a tenure of 6 years (FY 2025–26 to FY 2031–32) with incentives given to both greenfield (new) and brownfield (existing) investments on a first-come, first-served basis.
• ECMS aims to create a robust ecosystem for electronics manufacturing by attracting investments and integrating India into global value chains.
• The scheme is geared to reduce India’s dependence on imported components, improving domestic value addition and enhancing export capabilities.

Present status of India’s electronics sector

• Electronics have emerged as India’s third largest and fastest growing export category in 2024–25, rising from the seventh position in 2021–22.  It contributes around 3.4% of the country’s GDP.
• In the first half of FY 2025–26, electronics exports stood at USD 22.2 billion, maintaining strong growth momentum and placing the sector on course to become the country’s second largest exported item.
• Mobile manufacturing has been central to this growth, with production rising 28 times and India now ranking as the world’s second-largest mobile phone producer.

Challenges

• Despite impressive growth, India’s electronics sector faces several structural and strategic challenges like dependence on imported components, especially semiconductors and display panels.
• Limited high-end R&D and innovation ecosystems, particularly in advanced electronics.
• Supply chain vulnerabilities, including logistics and raw material sourcing.
• Skill gaps in specialized manufacturing and design roles.
• Global competition from established hubs like China, South Korea, and Taiwan

Governments steps 

• Production Linked Incentive (PLI) Scheme supports large-scale electronics and mobile manufacturing with financial incentives.
• Modified Electronics Manufacturing Clusters (EMC 2.0) promotes infrastructure development for electronics hubs.
• Semicon India Programme aims to build a domestic semiconductor ecosystem.
• Digital India and Make in India provide overarching policy support for electronics innovation and manufacturing.

Conclusion

• India is steadily climbing the manufacturing ladder, driven by rising exports, expanding domestic output, and a booming mobile manufacturing industry.
• These developments signal India’s emergence as a key player in global supply chains and its accelerating journey toward becoming a leading global electronics hub.
• With continued policy support, infrastructure investment, and innovation, it can evolve into a global hub for electronics manufacturing and exports.

Source: PIB