In a major policy push for domestic manufacturing, the Ministry of Electronics and IT has approved the first seven projects under the Electronics Component Manufacturing Scheme (ECMS), unlocking significant financial and social capital in the sector.
The seven approved projects represent a committed investment of ₹5,532 crore, which is expected to generate a production output of ₹44,406 crore over the next six years.
Securing the digital supply chain:
The approved projects target high-value, critical components essential for modern technology—from consumer electronics to high-growth sectors like automotive and renewable energy—a key strategic goal for supply chain resilience.
The components include:
Multi-Layer and HDI Printed Circuit Boards (PCBs): Used in automotive systems, medical devices, and high-performance computing.
Camera Module Sub-Assemblies: Vital for smartphones and IoT (Internet of Things) devices.
Polypropylene Film: A core material for high-performance capacitors used in electronics and power systems.
This push is part of a larger strategy to integrate India deeper into global value chains, moving beyond assembly and into core component manufacturing. This localization reduces reliance on single-source countries, which is a key tenet of global supply chain ESG (Governance) risk mitigation.
Social impact:
Beyond the financial metrics, the ECMS is designed to maximize the social (S) impact through employment and regional development.
The first batch of seven projects alone is expected to create 5,195 incremental direct jobs across manufacturing hubs in Tamil Nadu, Andhra Pradesh, and Madhya Pradesh. The majority of these new roles will be concentrated in high-tech manufacturing, supporting the growth of a skilled workforce.
Overall, the ECMS expects to generate over 141,801 direct jobs, surpassing the initial target, underlining the significant role this manufacturing expansion plays in India’s inclusive economic growth narrative. The transformation of electronics into India’s third-largest and fastest-growing export category in FY 2024-25 further highlights the powerful economic and social returns on this strategic public investment.
Crucially, the overall investment commitments under the ECMS have now reached ₹1.15 lakh crore (approximately $14 billion), nearly double the original target, demonstrating strong confidence from both domestic and global manufacturers in India’s policy stability and market growth.
The rapid over-subscription of the scheme serves as a strong signal to investors prioritizing governance (G) factors, indicating robust governmental support for the local supply chain.
