Major expansion ahead: Govt clears 29 proposals under ECMS

The latest approvals cover the manufacturing of 16 products with cross-sectoral applications, including mobile manufacturing, telecom, consumer electronics, strategic electronics, automotive, and IT hardware. These include:

• 1 sub-assembly: Display modules
• 11 bare components: Antennas, capacitors, connectors, heat sinks, Li-ion cells, relays, resistors, transducers, SMD passives, flexible PCBs, and inductors
• 3 supply chain items: Laminates, metallized films for capacitors, and rare earth permanent magnets
• Capital goods and their parts

Notably, the approvals include the country’s first SMD passive plant for tantalum-based capacitors, the first flexible PCB plant, and the first rare earth permanent magnet facility.

Speaking on the occasion, Union Minister for Electronics and Information Technology Ashwini Vaishnaw outlined four key priority areas for strengthening India’s electronics manufacturing ecosystem.

First, he emphasised the need to build strong in-house design capabilities, either independently or through collaborations with companies, universities, and research institutions, to enable deeper value capture within the country.

Second, he called for the development of a robust domestic supply chain, including coordinated buyer-seller arrangements, and suggested a preference for indigenous capital equipment manufacturers to create more opportunities for domestic players.

Third, he stressed the importance of implementing Six Sigma quality programmes through industry-wide collaboration to ensure global competitiveness and high manufacturing standards.

Fourth, he underscored the need for a structured workforce development initiative, proposing the establishment of 4–5 dedicated training centres, each with the capacity to train at least 5,000 individuals, to ensure a steady pipeline of skilled manpower.

S. Krishnan, Secretary, MeitY, said the ECMS has witnessed one of the most successful launches, attracting strong industry interest alongside swift government approvals. He added that the industry is now expected to match this momentum with rapid implementation.

He further noted that significant opportunities remain, particularly in capital equipment and upstream supply chains, and urged stakeholders to leverage the scheme to build resilient and diversified supply chains in the current geopolitical environment.

Pankaj Mahindroo, Chairman of the India Cellular & Electronics Association (ICEA), welcomed the enhanced ECMS outlay in the latest Union Budget. He said that the increase in allocation to ₹40,000 crore, coupled with the strong performance of the PLI scheme in mobile manufacturing, has boosted confidence in the scheme’s growth trajectory.

The approvals are expected to enhance domestic value addition by strengthening local supply chains, reducing dependence on imports of critical electronic components, and enabling the development of advanced manufacturing capabilities within India.

With these additions, a total of 75 applications have now been approved under ECMS, with a cumulative expected investment of ₹61,671 crore and the potential to generate 65,040 direct jobs.