Indian Govt. Approves Rs. 7,104 Cr. Investments for Electronics Manufacturing
Ministry of Electronics and Information Technology (MeitY) has approved 29 proposals under the Electronics Components Manufacturing Scheme (ECMS), involving a projected investment of Rs. 7,104 crore. These approvals follow earlier 46 clearances granted under the scheme.
In October 2025, 7 projects were approved under Tranche-I of ECMS with a total investment of Rs. 5,532 crore. Later, in November 2025, MeitY had approved 17 projects under Tranche-II of ECMS, with a total investment of Rs. 7,172 crore. This was followed by the approval of 22 additional proposals in January 2026 under Tranche-III, accounting for an investment of Rs. 41,863 crore.
ECMS and Its Structure Compared to PLI Scheme
Electronics Component Manufacturing Scheme (ECMS), launched by MeitY in April 2025, is designed to develop a domestic ecosystem for electronics component manufacturing through fresh investments.
Unlike the earlier Production-Linked Incentive (PLI) schemes, which primarily focus on incremental production, ECMS links incentives to turnover, CapEx and employment generation, thereby broadening the scope of performance metrics under the scheme.
Rs. 7,104 Cr. Electronics Manufacturing Push to Drive Production and Jobs
The recently approved projects, with a total investment of Rs. 7,104 crore, are expected to result in manufacturing of electronic products collectively valued at Rs. 84,515 crore annually. The projects are also estimated to generate around 14,246 direct employment opportunities.
These approvals cover the manufacturing of 16 products with applications across multiple sectors, including mobile manufacturing, telecommunications, consumer electronics, automotive, and IT hardware. These products fall under four categories: bare components, sub-assemblies, supply chain items, and capital goods.
Within these categories, bare components include 11 products that are antennas, capacitors, connectors, heat sinks, lithium-ion cells, relays, resistors, transducers, Surface Mount Device (SMD) passives, flexible PCBs, and inductors.
Of the remaining categories, the sub-assembly category includes display modules, while supply chain items comprise laminates, metallized films for capacitors, and rare-earth permanent magnets. Capital goods and their associated parts are also included within the approved scope.
The approved projects also include the establishment of India’s first SMD passive plant for tantalum-based capacitors, the first flexible PCB manufacturing facility, and the first rare earth permanent magnet facility.
Approved Companies and Manufacturing Segments
In the bare components segment, approvals have been distributed across multiple manufacturers. VVDN Technologies Pvt. Ltd. will manufacture antennas and heat sinks. Connectors will be produced by Molex (India) Pvt. Ltd., Terminal Technologies, SFO Technologies India Pvt. Ltd., and Amphenol FCI India Pvt. Ltd.
Further, Relays will be manufactured by O/E/N India Ltd., Permanent Magnets Ltd., BG Electrical and Electronics India Ltd., and SFO Technologies India Pvt. Ltd. A relay is essentially an electromagnetic switch that allows a low-power electrical signal to turn a much larger, high-power circuit on or off.
Vishay Components India Pvt. Ltd. has been approved for non-Surface Mount Device (SMD) and SMD passive capacitors. SMD capacitors are designed to be mounted directly onto the surface of a Printed Circuit Board (PCB), while non-SMD capacitors have long metal wires (leads) that stick out from the body. These leads are pushed through holes drilled in the PCB and then soldered from the opposite side.
The manufacturing of Lithium-ion cells has been awarded to Munoth Lithium Battery Pvt. Ltd.
Further, Vishay Precision Transducers will also produce resistors and transducers. Inductor manufacturing has been assigned to TDK India Pvt. Ltd., and flexible PCB production to Syrma Strategic Electronics Pvt. Ltd.
In the sub-assembly category, approvals for the manufacturing of display modules have been granted to Dixon Display Technologies Pvt. Ltd. and Wangda Technologies Pvt. Ltd.
Supply Chain and Capital Equipment Approvals
Approvals have also been granted for strengthening the electronics manufacturing supply chain. Syrma Components Pvt. Ltd. and Ratnaveer Precision Engineering Ltd. will manufacture copper-clad laminates, while Dhruv Industries Ltd. will produce metallized films for capacitors. Lohum Cleantech Pvt. Ltd. has received approval for manufacturing rare-earth permanent magnets.
In addition, approvals for capital equipment manufacturing have been granted to six entities: Titan Engineering & Automation Ltd., NeST Advanced Technology Development Centre Pvt. Ltd., ASM Technologies Ltd., Indo-MIM Ltd., Bharat FIH Ltd., and IFB Industries Ltd.
Impact on Domestic Manufacturing Ecosystem
According to the Press Information Bureau (PIB) release dated 30th March 2026, these approvals are expected to increase domestic value addition by strengthening local supply chains and reducing reliance on imports of critical electronic components. This initiative is also expected to support the development of advanced manufacturing capabilities within the country.
With these recently approved proposals, a total of 75 applications have been approved under ECMS, amounting to an expected investment of Rs 61,671 crore and direct employment for 65,040 people.