India Pushes Electronics Self-Reliance with ₹7,104 Cr Component Boost

The Centre has approved 29 projects worth ₹7,104 crore under the Electronics Component Manufacturing Scheme (ECMS), including an investment of ₹700 crore to establish India’s first rare earth permanent magnet manufacturing facility. The approvals span 16 key component segments such as lithium-ion cells, flexible printed circuit boards (PCBs), connectors, and display modules, and are spread across eight states. These investments are expected to generate over 14,000 jobs and drive production worth ₹84,515 crore, strengthening domestic value chains in electronics manufacturing.

The ECMS, notified on April 8, 2025, was initially launched with an outlay of ₹22,919 crore and a tenure of six years, with an optional one-year gestation period. Since its rollout, the government has approved 46 applications across 11 states, representing cumulative investments of ₹54,567 crore and an estimated production value of ₹3,67,343 crore. The scheme is aimed at deepening local manufacturing capabilities and reducing reliance on imports for critical electronic components.

India Targets Global Supply Chains

According to government projections, domestic output under the scheme is expected to meet 25% of India’s demand for rare earth permanent magnets, while localisation targets include 50% for printed circuit boards and 61% for lithium-ion batteries. To further strengthen the ecosystem, the Centre has increased the scheme’s outlay to ₹40,000 crore, aligning with its broader goal of building a $500 billion electronics manufacturing industry by 2030–31.

India’s electronics sector has witnessed rapid expansion over the past decade, supported by policy interventions and growing global demand. Electronics exports stood at $22.2 billion in the first half of FY26, maintaining strong growth momentum and positioning the sector to become the country’s second-largest export category. As per the Economic Survey 2025–26, electronics emerged as India’s third-largest and fastest-growing export segment in FY25, rising from seventh place in FY22.

Domestic electronics production has increased six-fold, from ₹1.9 lakh crore in FY15 to ₹11.3 lakh crore in FY25. Mobile phone manufacturing has also surged significantly, growing from ₹18,000 crore in 2014–15 to ₹5.45 lakh crore in 2024–25, highlighting India’s progress in building scale and competitiveness in electronics manufacturing.