Electronics Components Manufacturing Scheme to Enhance Exports and Job Creation

New Delhi, April 9 (NationPress) With smartphone exports surpassing Rs 2 lakh crore in FY25, where iPhones contributed approximately Rs 1.5 lakh crore, the IT Ministry has unveiled the Rs 22,919 crore Electronics Components Manufacturing Scheme (ECMS), a pivotal move to enhance India’s status as a global electronics manufacturing hub.

Union Minister Ashwini Vaishnaw stated that the announcement of the Electronics Components Manufacturing Scheme follows a recent Cabinet decision.

“Our administration has always embraced an open, consultative, and inclusive approach. We consider all viewpoints before finalizing any legislation or policy,” he remarked.

In the last decade, electronics production has increased five times, with exports growing over six times, showcasing an export CAGR of over 20 percent and a production CAGR exceeding 17 percent.

“The electronics manufacturing ecosystem, which includes component producers and a variety of stakeholders, has significantly expanded in a short time. Currently, there are more than 400 production units, both large and small, producing a wide range of components,” Vaishnaw added.

Reflecting global industry patterns, the Union Minister noted that India’s path in electronics manufacturing has progressed through various stages—starting with finished goods, advancing to sub-assemblies, and now entering a crucial phase of deep component manufacturing.

The sector is making steady progress into this third phase, which signifies a major advancement in value addition, self-sufficiency, and ecosystem richness.

Describing the scheme’s structure, the minister explained that it is a horizontal initiative with benefits extending across multiple sectors, including consumer electronics, medical devices, automobiles, power electronics, and electrical grids, thereby generating a substantial multiplier effect throughout the economy.

This initiative particularly emphasizes passive electronic components, which will receive support under the new program. Conversely, active components fall under the India Semiconductor Mission (ISM). The indicative list of passive components includes resistors, capacitors, connectors, inductors, speakers, relays, switches, oscillators, sensors, films, lenses, and more, highlighting the extensive scope of the scheme.

The initiative will also promote the design and manufacture of capital equipment used in electronics production. Employment generation will be a mandatory criterion for all applicants, covering both component manufacturers and capital equipment producers.