India eyes global electronics hub status as Rs 1.15 lakh crore proposals pour in under new component scheme

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India’s smartphone and electronics industry players said the country is on track to become a comprehensive electronics manufacturing hub, with domestic 'Indian Champions' set to play a key role in global supply chains through large-scale components manufacturing.

They noted that the Electronics Components Manufacturing Scheme (ECMS) has attracted unprecedented investor interest, reflecting strong confidence in India’s growth trajectory. Backed by both central and state governments, the scheme not only strengthens the electronics manufacturing ecosystem but also complements the semiconductor policy framework by driving higher domestic value addition.

The scheme has attracted investment proposals worth Rs 1,15,351 crore, nearly double its initial target, and is projected to generate production worth about Rs 10,35,000 crore. It is also expected to create 1.41 lakh direct jobs, marking a 54 percent increase over earlier estimates.

The proposals span across a wide spectrum of component categories, including Passives, modules, PCBs, displays, Camera, casings, Battery Cells and more, effectively capturing the end-to-end requirements of electronics manufacturing inputs.

Calling the industry’s response a “defining moment” in India’s journey towards Aatmanirbharta, the India Cellular and Electronics Association (ICEA) said the ECMS will firmly establish sub-assembly and component manufacturing in the country. ICEA represents Apple, Foxconn, Tata Electronics, Dixon, Flex, Xiaomi, Oppo, Vivo and Lava, among others.

“This is a turning point,” said Pankaj Mohindroo, Chairman, ICEA. “The scheme is secular and horizontal across all electronics verticals, building both competency and capacity. India is already the world’s second-largest mobile phone manufacturer, and with ECMS we are confident the country will evolve into a comprehensive electronics hub where Indian Champions play a leading global role.”

Mohindroo noted that ICEA had worked closely with the Ministry of Electronics and Information Technology (MeitY) on the scheme’s design, engaging companies from Taiwan, Japan, South Korea, and the US during consultations and outreach.

He added that deeper ecosystem development and higher domestic value addition will follow as manufacturing scale expands, making ECMS the natural progression of India’s mobile and electronics growth.

The initiative is aligned with Prime Minister Narendra Modi’s vision of building a $500 billion electronics manufacturing ecosystem by 2030–31, including $180–200 billion in exports, as per ICEA.

Ashok Chandak, President of IESA and SEMI India, said proposals under ECMS span a wide spectrum of components — from passives, modules, and PCBs to displays, cameras, casings, and battery cells.

“The extraordinary response highlights the industry’s strong confidence in India’s electronics growth path,” Chandak said. He outlined IESA’s five-pronged strategy for execution, including international collaborations, state partnerships, deeper distributor engagement, support for EMS and OEMs, and global policy promotion.

India’s electronics sector has already shown robust momentum, expanding at a 15% CAGR over the past decade to reach $133 billion in 2024–25, with mobile phones contributing $64 billion. Policies such as the EMC scheme, SPECS, and the Production-Linked Incentive (PLI) schemes have been instrumental in building this foundation.

ICEA and ICEA said they remain committed to helping deliver on ECMS targets, fostering partnerships, and driving outcomes that enhance India’s global competitiveness.

Industry veterans reinforced the optimism. Dr. Ajai Chowdhry, Chairman of EPIC and co-founder of HCL, said the Rs 59,000 crore scheme was “critical for creating value addition in electronics manufacturing.”

He noted that a robust component ecosystem, coupled with semiconductors, would enable India to build system-level products such as CCTVs, computers, and smart meters, generating demand for chips designed and produced domestically. “Today, most electronics are imported from China. This is a vital step towards reducing dependence and achieving technology sovereignty,” Chowdhry said.