Is India Becoming the World's Premier Electronics Manufacturing Hub?
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Synopsis
India's Electronics Component Manufacturing Scheme (ECMS) is setting new benchmarks, attracting unprecedented investments and creating jobs, signaling a bright future for the electronics sector. With a focus on self-reliance, this initiative promises to elevate India on the global electronics manufacturing stage.
Key Takeaways
- ECMS has attracted over Rs 1,15,351 crore in investments.
- Projected production output of around Rs 10,35,000 crore.
- Estimated to create 1,41,000 direct jobs.
- India is the second-largest mobile phone manufacturer in the world.
- Goal of establishing a USD 500 billion domestic electronics ecosystem by 2030-31.
New Delhi, Oct 2 (NationPress) The industry applauded the IT Ministry on Thursday, under the remarkable leadership of Minister Ashwini Vaishnaw, for the significant success of the Electronics Component Manufacturing Scheme (ECMS).
The overwhelming enthusiasm for the scheme signifies a pivotal moment in India’s journey toward Aatmanirbharta, with Indian enterprises now deeply embedded in global value chains.
ECMS has attracted a historic response from both domestic and international investors, securing investments exceeding Rs 1,15,351 crore and anticipated to generate an output of around Rs 10,35,000 crore—nearly double the initial projections.
Estimates suggest the scheme will create 1,41,000 direct jobs from 249 applications, reflecting a remarkable 54 percent boost over the original employment forecast.
The India Cellular and Electronics Association (ICEA) noted that this extraordinary influx of investments symbolizes the increasing confidence of both local and global businesses in India’s policy stability.
“The manufacturing of sub-assemblies and components will be firmly rooted in the country now, significantly enhancing India’s manufacturing capabilities and global competitiveness. This scheme is inclusive for all sectors of electronics, thereby strengthening core competencies and capacities,” remarked Pankaj Mohindroo, Chairman of ICEA.
The electronics industry has already shown impressive growth and capability, bolstered by industrial initiatives like the EMC scheme, SPECS, and the Production Linked Incentive (PLI) Schemes. The sector has expanded at a CAGR of 15 percent over the past decade, projected to reach $133 billion by 2024-25, with mobile phones comprising the largest segment at $64 billion.
The enhancement of the ecosystem and the growth in domestic value addition hinge on the scale of manufacturing.
“India is now the second-largest mobile phone producer globally, and with ECMS, we are optimistic that India will position itself as a comprehensive electronics manufacturing center where Indian Champions will play a crucial role on the international stage,” stated Mohindroo.
This aligns with Prime Minister Narendra Modi's vision. India is now firmly on track to fulfill the collective goal of establishing a USD 500 billion domestic electronics manufacturing ecosystem by 2030-31, including $180-200 billion in exports.
Point of View
It is evident that the success of the Electronics Component Manufacturing Scheme is a testament to India's growing stature as a global manufacturing hub. This initiative not only enhances job opportunities but also reinforces the country’s commitment to self-reliance in critical sectors. The collaboration between the government and industry leaders showcases a unified approach towards sustainable economic growth.
NationPress
02/10/2025
Frequently Asked Questions
What is the Electronics Component Manufacturing Scheme (ECMS)?
The ECMS is a government initiative aimed at boosting the electronics manufacturing sector in India by attracting investments and creating jobs.
How much investment has the ECMS attracted?
The scheme has garnered investments exceeding Rs 1,15,351 crore, significantly surpassing initial expectations.
What is the job creation potential of ECMS?
The ECMS is projected to create approximately 1,41,000 direct jobs, reflecting a 54 percent increase over previous employment targets.
How does ECMS align with India's self-reliance goals?
ECMS is a key component in India's journey towards Aatmanirbharta, enhancing domestic capabilities and integrating Indian firms into global value chains.
What is the expected growth of the electronics sector in India?
The electronics sector is projected to grow at a CAGR of 15 percent, reaching $133 billion by 2024-25.
