India is aiming to generate electronics components production worth ₹4.56 lakh crore while attracting ₹59,350 crore in investments under a new policy push, as the government looks to deepen domestic value addition in a sector that has already emerged as a key pillar of manufacturing growth, according to the Ministry of Electronics and IT (MeitY).

The proposed Electronics Components Manufacturing Scheme (ECMS), with a budgetary outlay of ₹22,919 crore, marks a strategic pivot towards building a strong upstream ecosystem—moving beyond finished goods to localise critical parts and sub-assemblies.

Building the missing middle

While India’s electronics manufacturing has expanded rapidly over the past decade, much of the growth has been driven by final product assembly, particularly in smartphones. High-value components such as semiconductors, display panels and advanced modules continue to be largely imported.

The ECMS aims to address this gap by incentivising domestic production across a wide spectrum of components, including printed circuit boards (PCBs), lithium-ion cells, sensors and camera modules.

By targeting the “missing middle” of the value chain, the scheme is expected to improve domestic value addition and reduce import dependence over time.

Investment, jobs and scale

The government expects the scheme to not only catalyse ₹59,350 crore in investments but also create direct employment for over 91,000 people, with additional indirect job creation through supply chains and ancillary industries.

Unlike earlier initiatives that were largely focused on finished goods, the ECMS offers a mix of turnover-linked, capital expenditure-linked and hybrid incentives—reflecting the capital-intensive and technology-heavy nature of component manufacturing.

A horizontal manufacturing push

The scheme has been designed as a horizontal intervention, spanning multiple sectors beyond mobile phones, including consumer electronics, automotive electronics, medical devices and power electronics.

It also extends support to capital equipment and tooling, which are critical to building a self-sustaining manufacturing ecosystem.

India’s electronics sector has already seen strong scale-up, with production and exports growing multi-fold over the past decade. However, limited domestic presence in high-value components has constrained overall value capture, according to the ministry.