Centre Approves Electronic Component Projects Worth $4.6 Billion

The Centre has approved electronic component manufacturing projects worth $4.6 billion to boost domestic production under its incentive framework, the Ministry of Electronics and Information Technology (MeitY) said on Friday. Global industrial players including Samsung Electronics, Tata Electronics, and Foxconn are among the companies whose proposals have received approval.

The approved projects will receive government subsidies under the Electronics Component Manufacturing Scheme (ECMS), which has a total outlay of ₹229.19 billion. These projects will focus on the manufacturing of key components such as mobile phone enclosures, camera sub-assemblies, and other critical electronic parts, according to reports.

The move comes as India intensifies efforts to scale up domestic electronics manufacturing and reduce import dependence. Over the past few years, the Centre has rolled out multiple production-linked and component-focused incentive schemes aimed at attracting both global and domestic investors, strengthening local value chains, and improving India’s position in global electronics supply networks.

The push also aligns with the government’s broader Viksit Bharat 2047 vision, which aims to transform India into a developed nation by the centenary year of Independence.

India’s electronics manufacturing sector produced goods worth ₹125 billion in the 2023–24 fiscal year, according to a Reuters report.

The government has set an ambitious target of expanding production capacity to $500 billion by FY31, supported by investments across component manufacturing, assembly, and advanced electronics.

According to the ministry, the newly approved projects will be spread across eight states and are expected to produce electronic components worth ₹2.58 trillion over their lifecycle. These projects are also projected to generate direct employment for around 34,000 individuals.

The latest approvals add to earlier clearances under the scheme. In the first phase, 24 applications involving investments of ₹12,704 crore were approved. This was followed by the clearance of 17 projects under the second tranche in November, with a cumulative investment of ₹7,172 crore.

The projects will be established across Andhra Pradesh, Haryana, Karnataka, Madhya Pradesh, Tamil Nadu, Uttar Pradesh, and Rajasthan. In addition, some projects are expected to generate employment opportunities in Telangana, the ministry said.