India Approves ₹7,172 Crore Investment to Boost High Value Electronics Manufacturing Under ECMS

India's Ministry of Electronics and Information Technology (MeitY) has approved 17 new projects worth ₹7,172 crore under the Electronics Component Manufacturing Scheme (ECMS), in a move to strengthen its electronic ecosystem.

The scheme will focus on deepening India’s self-reliance in the high-value electronics space by stressing on development of complex components such as multi-layer PCBs, camera modules, connectors, precision oscillators, and enclosures. The approved projects will be distributed across nine states, including Karnataka, Madhya Pradesh, Tamil Nadu, Gujarat, Uttar Pradesh, Goa, and Jammu & Kashmir.

High-Value Components: Moving Beyond Basic Assembly

According to MeitY, these new tranche of approvals under ECMS marks a clear shift from low-end manufacturing to more complex and precision-driven electronics components. The total production capacity committed under these 17 projects is projected to reach ₹65,111 crore, a sign of confidence and boldness in India’s long-term electronics strategy.

Ashwini Vaishnaw, Minister of Electronics and IT emphasized that this move is not just about production but more about enhancing design capabilities, establishing six-sigma quality, and building a robust domestic supply chain. He also confirmed that a skilling framework will be launched to support this transformation in the electronics manufacturing industry.

Strategic Importance for India’s Electronics Ecosystem

This ₹7,172 crore investment falls under a larger government vision to boost value addition in India’s electronics sector. Earlier this year, the Union Cabinet had approved a ₹22,919 crore ECMS scheme to incentivize domestic production of components. That scheme is expected to generate ₹4.56 lakh crore in cumulative production and create 91,600 direct jobs over six years.

Industry experts suggest that by increasing production of high-end components will reduce reliance on imports — especially from markets that currently dominate the complex component manufacturing. By localizing the production of components like optical transceivers, oscillators, PCBs, and camera modules, India is set to make a strong footing in the global electronics value chains.

Economic and Employment Impact

Beyond boosting manufacturing, the ECMS initiative is expected to increase job opportunities, especially in states that are building electronics manufacturing clusters. As production scales up, India could also see higher exports of complex components, increasing its share in the international electronics market.

Moreover, supporting high precision manufacturing within India aligns with broader economic and strategic goals — mitigating risks from global supply chain disruptions and enhancing India’s competitiveness in key future technologies like IoT, automotive electronics, and telecom.

Conclusion

The ₹7,172 crore ECMS tranche represents a big leap forward for India’s electronics manufacturing ambitions. By incentivizing high-value component production, the government is laying the foundation for a resilient and globally competitive electronics ecosystem.

Noshen Qureshi

Noshen Qureshi

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