In a major push to bolster domestic electronics production and deepen India’s manufacturing capabilities, the government on Monday approved the second tranche of projects under the Electronics Component Manufacturing Scheme (ECMS). A total of 17 projects, with an estimated investment of ₹7,172 crore, have been sanctioned by the Ministry of Electronics and Information Technology (MeitY). These approvals mark a significant milestone in India’s broader strategy to expand its electronics ecosystem and reduce dependence on imports for critical components.

An official within the IT ministry noted that new projects under the ECMS would be announced approximately every fortnight, reflecting the government’s systematic approach to nurturing a robust electronics manufacturing base. The first tranche of approvals, announced on October 27, comprised seven projects worth ₹5,532 crore. With Monday’s announcement, the cumulative investments approved under the scheme have reached ₹12,704 crore out of a projected total of ₹1.15 lakh crore, covering 24 of the 249 proposed projects.

The 17 newly approved projects will establish manufacturing units across nine states and union territories, with Karnataka receiving five approvals, Tamil Nadu and Maharashtra three each, and Jammu, Uttar Pradesh, Madhya Pradesh, Gujarat, Andhra Pradesh, and Goa one each. These units are expected to produce a wide array of electronics components, ranging from camera modules, connectors, oscillators, and enclosures to multi-layer printed circuit boards (PCBs).

Speaking at an event organized by the India Cellular & Electronics Association (ICEA) in New Delhi, IT Minister Ashwini Vaishnaw highlighted that India’s electronics ambitions, once met with skepticism, have gained momentum. “There were many naysayers, and those naysayers are now proven wrong. You have shown the way how this country will become a major electronics manufacturing hub,” Vaishnaw said. He elaborated that the government initially promoted large-scale assembly of finished electronic products to create domestic demand, which subsequently generated a need for a wider array of components. The ECMS is the next step in this strategy, focusing on critical components essential for long-term industry growth.

Notably, two projects approved under the second tranche mark the first-ever domestic manufacturing of optical transceivers, which are key components in converting electrical signals into light signals for transmission over fiber optic networks and then back into electrical signals. Jabil Circuit India in Gujarat and Zetchem Supply Chain Services in Tamil Nadu will produce these devices, which are critical for data centers and high-speed telecommunications. The two projects are expected to meet between 237% and 250% of domestic demand, positioning India to compete as a potential global exporter of optical transceivers.

Another area of focus is the production of multi-layer PCBs, which received the largest allocation under the second tranche at ₹3,183 crore. The scheme anticipates adding ₹6,463 crore per year in PCB output, totaling ₹12,534 crore annually, and covering nearly a third of domestic demand. Among the projects, the facility being established in Jammu by Meena Electrotech is the first of its kind in the union territory under the ECMS, reflecting a strategic push to broaden the manufacturing base across diverse regions.

IT Secretary S. Krishnan emphasized that the primary objective of ECMS is to deepen India’s electronics value chain while cultivating domestic competitiveness. He noted that the scheme aims not only at mobile phones, which currently account for approximately 45% of the overall industry, but also at a broader array of electronics segments including automotive, consumer devices, and potentially emerging technology products that may arise in the future.

The 17 projects approved under this tranche are expected to contribute ₹65,111 crore in production output, bringing the cumulative projected production value from both tranches to ₹1,09,517 crore. This builds on the ₹44,406 crore in expected output from the first tranche, demonstrating the scale of impact these projects are expected to generate within the Indian electronics sector.

Vaishnaw outlined three core priorities for the electronics manufacturing industry: establishing in-house design teams, maintaining six-sigma quality production standards, and prioritizing the use of swadeshi (home-grown) services and products across manufacturing units, labs, and research facilities. He emphasized that these steps are critical to ensuring long-term competitiveness, resilience, and innovation in India’s electronics sector.

To support the growth of the talent pipeline, the government is developing a new electronics manufacturing skilling framework under the Skill India initiative. This program, implemented in partnership with social-sector organizations, is designed to provide hands-on training and produce industry-ready professionals. It will focus on Tier-2 and Tier-3 cities, enabling the development of a wider, more inclusive workforce capable of meeting the demands of a rapidly expanding electronics ecosystem.

Industry representatives, including ICEA chairman Pankaj Mohindroo, stressed the importance of developing indigenous capabilities for capital goods and advanced machinery. “When we master the machines, we master the market,” Mohindroo said, highlighting the necessity of domestic expertise in high-precision equipment to ensure the competitiveness of India’s electronics manufacturing sector.

In addition to the manufacturing approvals, the event showcased India’s first energy-efficient edge silicon chip, ARKA-GKT1, developed collaboratively by Cyient Semiconductors and Azimuth AI. This platform-on-chip promises up to ten times higher performance for applications in smart utilities, smart cities, industrial Internet of Things, and battery systems, underscoring India’s ongoing efforts to integrate advanced technology into its domestic manufacturing and R&D landscape.

The ECMS initiative reflects a strategic vision by the Indian government to establish the country as a global electronics hub, reduce import dependency, create high-value manufacturing jobs, and foster innovation in critical technology segments. By focusing on both component manufacturing and cutting-edge applications, the government aims to ensure that India not only assembles electronics products but also produces key components and develops proprietary technologies that can compete internationally.

Overall, the second tranche of ECMS projects signals a robust trajectory for India’s electronics sector, emphasizing a balanced approach of infrastructure development, skill enhancement, technological innovation, and indigenous manufacturing. With expected production outputs exceeding ₹1 lakh crore from the approved projects, and the establishment of facilities across nine states and union territories, India is poised to strengthen its position in the global electronics value chain and enhance its capacity to supply critical components for both domestic consumption and export markets.

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