MC EXPLAINER From incentives to accountability: Why Six Sigma is back in focus for India’s electronics manufacturing industry

Make in India

Union Minister for Electronics and IT Ashwini Vaishnaw has sharpened the government’s push for Six Sigma, flagging the industry’s slow adoption of global quality standards. Speaking on March 30, 2026, at the launch of the fourth tranche of approvals under the Electronics Component Manufacturing Scheme (ECMS) in New Delhi, he signalled that future incentives will increasingly depend on measurable improvements in quality and capability.

What is Six Sigma? 

Six Sigma is a globally recognised methodology that uses data and statistical tools to improve processes and reduce defects in manufacturing. It is designed to deliver highly consistent output and is widely adopted in advanced industries where precision is critical. In electronics, Six Sigma serves as a benchmark for reliability and is often a prerequisite for integration into global supply chains.

A design-led approach is critical for integration into global supply chains because it is design—not assembly—that captures the highest share of value, determines product differentiation, and anchors long-term partnerships with global brands, experts said.

Experts said companies that control design are better positioned to influence specifications, innovate faster, and move up the value chain, rather than remaining dependent on low-margin manufacturing work. For India, strengthening domestic design capabilities is essential to reduce import dependence, build intellectual property, and establish itself as a trusted, end-to-end electronics manufacturing hub.

This is where Six Sigma becomes equally important: global supply chains demand near-zero defects, consistency, and reliability at scale. Without robust quality frameworks like Six Sigma, even strong design capabilities can fall short of global standards. Together, design depth and quality excellence form the foundation for India to compete effectively and secure a larger share of high-value opportunities in the global electronics ecosystem

The government’s emphasis on Six Sigma reflects a broader push to embed quality at every stage of the electronics value chain. Vaishnaw stressed that India must go deeper across “quality, supply chain, design and talent” to remain competitive. He indicated that the government has not received the desired level of support from the industry so far, and that companies need to take more concrete steps.

The minister underlined that while manufacturing adds value, it is quality and engineering depth that determine long-term competitiveness. Without robust quality systems, Indian firms risk being excluded from high-value global supply chains, limiting their ability to scale sustainably.

The shift to design-led value creation

A key message from the government is that the real value in electronics lies in design rather than assembly. Vaishnaw emphasised that India must build significantly deeper design capabilities, whether independently or through collaborations with global partners, universities, or other institutions. He described this as a “learning curve we must climb,” making it clear that there is no alternative path.

He noted that design carries a disproportionately large share of value in the electronics ecosystem, and that for India to capture this value, design work must increasingly be done within the country. This, he said, is essential for the long-term growth of the sector.

How ECMS is driving this transition

ECMS is being positioned as a tool to drive this transformation. While the scheme incentivises component production, the government is increasingly linking its benefits to improvements in quality standards and design capabilities. With approvals tied to performance, ECMS is evolving into a mechanism to enforce broader structural changes in the industry.

A stricter policy stance

Vaishnaw has made it clear that the government is prepared to take a tougher approach, if required. He pulled up industry body ICEA (India Cellular and Electronics Association) and its member firms for not adhering to the integrated approach set by MeitY (Ministry of Electronics and Information Technology) to boost high-quality and self-reliant electronics manufacturing.

Companies have been asked to submit structured plans for design and Six Sigma adoption within a defined timeline, failing which incentives could be withheld or projects reconsidered. The government, according to the minister, has the flexibility to modify scheme parameters if necessary.

Any such changes, he indicated, would be aimed at ensuring that companies align with the country’s long-term growth, rather than focusing solely on short-term business gains.

Industry signals alignment on quality push

“We have taken note of the concerns raised, and they are both valid and timely. The issue reflects a deeper structural challenge within the industry that warrants careful attention. Such concerns are appropriate, given the broader implications for the sector’s growth and long-term sustainability. Addressing them effectively will be essential to ensuring that the industry remains globally competitive,” Pankaj Mohindroo, chairman of ICEA, told Moneycontrol.

At the same time, there is confidence that the industry will rise to the occasion and respond in a constructive manner, Mohindroo said, adding that stakeholders are expected to work collaboratively to navigate these challenges and strengthen the ecosystem.

Puneet Agarwal, chief executive of Manesar-based VVDN Technologies, which recieved approvals for antenna and heat sink components on March 30, said the company is conducting Six Sigma training and certification programmes in-house for its existing engineers.

“This is helping us ramp up the push for a larger number of contracts from global brands. We have also been focused on design-led electronics engineering since the start, and are in line with the focus areas of the ECMS programme,” he said, adding that companies have been ramping up efforts to boost local manufacturing and are willing to comply with policy requirements under MeitY’s ECMS incentives programme.

India’s top electronics contract manufacturer, Dixon Technologies’ co-founder and executive chairman, Sunil Vachani, said the company is rolling out digital transformation initiatives, setting up centres of excellence for skilling, and tying up with universities to address the challenges of Industry 4.0.

“The minister rightly highlighted the next phase of focus for the industry. The government has already done its part by introducing strong policy frameworks such as PLI and ECMS. The focus must now shift to skilling the workforce, building product design capabilities in India, developing a robust domestic supply chain, and achieving Six Sigma quality standards,” he said.

India must evolve into a product nation rather than remaining just a manufacturing hub, Vachani added, noting that while the industry has begun progressing in this direction, a coordinated roadmap involving all stakeholders and industry bodies is essential.

The bigger picture

The government’s message marks a decisive shift in India’s electronics policy—from scale-driven manufacturing to capability-driven growth. By prioritising quality, design, supply chain depth and talent, policymakers are seeking to ensure that India not only produces more, but also captures a larger share of value in the global electronics ecosystem.