Oct 29, 2025

India's transformation into a global electronics assembly hub is one of its most significant economic success stories in recent years. Giants like Apple and Samsung now manufacture millions of smartphones within its borders for domestic and international markets. However, this success story has a crucial caveat: while India excels at assembling the final product, it still imports a vast majority of the essential components that go inside them—microchips, resistors, capacitors, and printed circuit boards (PCBs). This reliance on imported parts makes the industry vulnerable to global disruptions, as seen during the pandemic, and limits the country's potential for true innovation and value creation within the electronics sector.

Recognizing this critical gap, the Ministry of Electronics and Information Technology (MeitY) introduced the Electronics Component Manufacturing Scheme (ECMS) on 'April 8, 2025'. Launched with a substantial outlay of Rs.'22,919' crore, this scheme is a strategic pillar of India's broader vision for 'Aatmanirbhar Bharat' or self-reliance. The ECMS is specifically designed to incentivize domestic companies and attract international players to set up manufacturing bases for these vital components within India. The scheme is structured with a six-year tenure, spanning from FY '2025-26' to FY '2031-32', which includes a one-year gestation period to allow companies adequate time to establish their manufacturing facilities. The scheme has clear and ambitious targets: to generate significant investment, achieve a massive production output, and create a wealth of new employment opportunities, fostering a robust and self-sustaining electronics ecosystem.The ECMS is far from an isolated policy. It is a key part of a comprehensive and proven policy framework that has been accelerating India's industrial growth for years. It builds directly upon the tremendous success of the Production-Linked Incentive (PLI) schemes, which have already attracted massive investments and boosted exports to record levels. It is synergized with other supportive programs like the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) scheme, which provides financial assistance for capital expenditure, and the National Policy on Electronics '2019', which outlines the overarching goal of making India a global hub for both Electronics System Design and Manufacturing (ESDM).

This ambitious vision is being realized through strategic, on-the-ground development. The government is facilitating the establishment of specialized Electronics Manufacturing Clusters—industrial zones with ready-to-use infrastructure and common facilities to reduce setup costs and time for manufacturers. This is complemented by a massive push to modernize India's logistical network, including ports and dedicated freight corridors, to ensure smooth and efficient domestic distribution and export capabilities.The results of this multi-pronged strategy are already materializing in concrete ways. Under the Semicon India Programme, several major semiconductor fabrication and packaging plants have been approved, including multi-billion-dollar facilities from Micron in Gujarat and Tata in Assam. Alongside these, display and component manufacturing ventures from other international giants are also taking root. This focus on "deep manufacturing" is supported by India's greatest asset: its human capital. With one of the world's largest annual outputs of STEM graduates, and upskilling initiatives led by sector-specific councils, India is ensuring its workforce is ready for the high-tech jobs of the future.

The outcomes are promising. Mobile phone exports have skyrocketed, and with major manufacturers planning to double their production capacity in India, the country is projected to account for a significant portion of global electronics exports by 2030. Beyond just production, India is also fostering a design-led evolution, aiming to move up the value chain. The ultimate goal of this entire concerted effort is ambitious yet achievable: to become a '$500' billion electronics manufacturing economy by '2030', transforming the nation from a skilled assembler into a truly integrated, innovative, and indispensable global electronics hub.