India’s electronics component push draws ₹69,000 crore investment, boosts self-reliance: Ashwini Vaishnaw

India’s electronics component manufacturing ecosystem is gaining ground, with investments committed under the Electronics Component Manufacturing Scheme (ECMS) reaching ₹69,000 crore, surpassing the government’s original target of ₹59,000 crore.

Union Electronics and Information Technology Minister Ashwini Vaishnaw said on Monday that India has achieved full domestic capability in enclosures, relays and optical transceivers, while anode materials have also reached full self-reliance.

“I'm happy to share with you that now, in enclosures, we have become fully Atmanirbhar,” Vaishnaw said, pointing to the progress in building domestic component capacity.

Localisation gathers pace

Domestic manufacturers currently meet around 60% of India’s lithium-ion cell demand, 80% of laminate requirements and 75% of connector demand. Local production also accounts for around 55% of transducer requirements, 40% of permanent magnets and 20% of capacitors.

Vaishnaw highlighted the progress in lithium-ion cells, saying, “In lithium-ion cells, we are now 60% Atmanirbhar.” He added that India could move towards complete self-reliance in laminates as additional capacity comes on stream.

The localisation push is also beginning to translate into exports. India is already exporting anode materials and optical transceivers, while Indian manufacturers have started exporting printed circuit boards (PCBs) to China.

The development marks a shift from simply replacing imports to building component capabilities that can also serve global markets.

ECMS projects move towards production

The ECMS has so far resulted in 106 approved projects, against an initial government expectation of around 60. Of these, 38 have already started manufacturing, while another 16 are at the construction or machinery-installation stage.

The approved projects are expected to generate 74,628 direct jobs. Including indirect employment, the overall employment potential could reach around 2.5 lakh jobs.

Vaishnaw has urged manufacturers to examine their entire bill of materials and identify components and sub-components that can be produced domestically.

Capital equipment becomes next focus

The government’s localisation strategy is now moving further upstream, with domestic manufacturing of capital equipment emerging as the next priority.

Two companies received approval for capital equipment manufacturing on Monday, Vaishnaw said, while urging industry associations to develop a roadmap for expanding domestic production of machinery used by electronics manufacturers.

He also identified four areas that will be critical to the sector’s next phase of growth — design capabilities, domestic supply chains, manufacturing quality and talent.

On quality, Vaishnaw called for wider adoption of Six Sigma and lean manufacturing practices. He also stressed the need for greater investment in training as the industry expands.

With ECMS investments at ₹69,000 crore, the government asserts that the focus now shifts to getting approved projects operational, scaling domestic capabilities and making Indian-made components competitive in global markets.