In a major push to strengthen India’s position as a global electronics manufacturing hub, the Ministry of Electronics and Information Technology (MeitY) has officially notified the Electronics Components Manufacturing Scheme. The announcement, made at a press conference in New Delhi by Union Minister Shri Ashwini Vaishnaw, marks a strategic shift toward deepening the country’s electronics ecosystem.
“This move continues the government’s inclusive and consultative approach to policymaking,” Vaishnaw said, highlighting that stakeholder feedback on the draft guidelines is now being invited.
Five-Fold Production Growth, ₹2 Lakh Crore Smartphone Exports
The Minister showcased India’s impressive strides in electronics, citing a five-fold increase in production and a six-fold growth in exports over the last decade. In FY 2024–25 alone, smartphone exports exceeded ₹2 lakh crore, with iPhones contributing nearly ₹1.5 lakh crore.
With more than 400 units now manufacturing a variety of components, India’s electronics industry has rapidly matured—from importing finished goods to producing sub-assemblies and now entering the advanced stage of deep component manufacturing.
A Horizontal Scheme Spanning Multiple Sectors
Unlike earlier vertical-focused initiatives, this scheme is designed as a horizontal program, benefiting a range of sectors such as consumer electronics, automotive, medical devices, power electronics, and electrical grids. This broader approach is expected to generate significant multiplier effects across the economy.
The scheme emphasizes the importance of passive components—including resistors, capacitors, inductors, connectors, and sensors—while active components will continue to be supported under the India Semiconductor Mission (ISM).
Supporting Capital Equipment and Tooling Industry
Recognizing the crucial role of high-precision machinery in electronics production, the scheme will also promote the manufacturing of capital equipment and tooling. Vaishnaw cited parallels to the Semiconductor Mission, which attracted global majors like Applied Materials and Lam Research. Chemical and gas giants such as Linde have already initiated investment in India, with others in talks.
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Incentive Models to Reflect Sector Specifics
The scheme offers three tailored incentive structures:
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Turnover-linked incentives
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Capex-linked incentives
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Hybrid models
Given the higher capital intensity and longer gestation periods in component manufacturing, these flexible incentive models are designed to address the industry’s structural challenges.
Mandatory Job Creation and Inclusive Growth
Employment generation will be a mandatory eligibility criterion for both component manufacturers and capital equipment producers. This aligns with the government’s vision of inclusive and sustainable industrial growth, while reinforcing India’s ambition to be a global leader in electronics manufacturing.
