n a decisive step towards electronics self-reliance, the Ministry of Electronics and Information Technology (MeitY) has greenlit 29 major projects under the Electronics Components Manufacturing Scheme (ECMS), unlocking ₹7,104 crore ($751 million) in investments to localise critical supply chains. The approvals—spanning PCBs, capacitors, lithium cells, display modules, and rare-earth magnets—position Dixon Technologies, Lohum Cleantech, and others to slash India’s 70% import dependence while targeting a $500 billion sector by FY31, up from $125 billion last year.
Dixon’s display module unit and Lohum’s pioneering rare-earth permanent magnet facility from oxides headline the list, heralding India’s entry into high-value materials long dominated by China and Japan. Lohum’s project marks a national first, vertically integrating magnet production for EVs, wind turbines, and robotics—sectors exploding under Budget 2026’s green mandates.
Policy Pivot from Assembly to Core Components
ECMS builds urgency as PLI 1.0’s mobile incentive sunsets March 2026, with fresh PLI 2.0 incentives anticipated to sustain Apple and Samsung’s iPhone surge ($12,000 crore exports FY25). Incentives reward 50% domestic value addition, creating 25,000 jobs and ₹44,000 crore incremental output.
MeitY Secretary S Krishnan emphasised ecosystem synergies: “From semiconductors (ISM 2.0, ₹40,000 Cr) to data centres (infra status), we’re owning the stack.” Dixon MD Atul Bhiptadevi noted: “Display localisation de-risks smartphone/TV BOMs amid global disruptions.”
Rare-Earth Breakthrough Powers EVs and Renewables
Lohum Cleantech’s magnet venture addresses a glaring gap—India imports 95% despite vast rare-earth reserves in Odisha, Kerala. CEO Kamal Narayan: “Our oxide-to-magnet process cuts costs 30%, powers 1M EVs annually by 2030.”
Complemented by Reliance New Energy’s lithium cells and Foxconn connectors, approvals fortify automotive/telecom resilience. Savills forecasts 21% CAGR data centre growth to 3.4GW by 2030, demanding local passives/capacs.
