Centre approves 29 projects worth ₹7,104 crore under ECMS, including India’s first rare earth permanent magnet manufacturing unit.
Investments expected to generate 14,000+ jobs and drive production worth ₹84,515 crore across 16 component segments.
Move aligns with $500 billion electronics manufacturing target and aims to boost localisation in PCBs, lithium-ion batteries and critical components.
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.
2 March 2026
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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.
