What's Happening?
The Centre has approved 22 new projects under the Electronics Components Manufacturing Scheme (ECMS), aiming to strengthen India's domestic electronics manufacturing ecosystem. The Ministry of Electronics and
Information Technology (MeitY) announced that these projects are expected to attract investments worth Rs 41,863 crore and generate an estimated production of Rs 2.58 lakh crore. The approvals are part of the third tranche under the scheme, following previous phases that approved projects with significant investments. Major companies like Dixon, Samsung Display Noida Pvt Ltd, Foxconn, and Hindalco Industries are among the approved applicants, expected to play a crucial role in expanding India's manufacturing capacity.
Why It's Important?
The approval of these projects is a critical step in India's strategy to become self-reliant in electronics manufacturing. By focusing on key components such as PCBs, lithium-ion cells, and mobile phone sub-assemblies, the initiative aims to increase domestic value addition and reduce dependency on imported parts. This move is expected to create nearly 34,000 direct jobs, contributing to economic growth and regional development. The scheme is part of a broader government effort to achieve $500 billion in electronics production by 2030-31, positioning India as a global hub for electronics manufacturing.
What's Next?
The approved projects will be implemented across eight states, with companies like Motherson and Tata Electronics leading significant employment-generating initiatives. The Ministry will likely continue to support these projects through the Production Linked Incentive (PLI) framework, ensuring they meet investment and production targets. As the projects progress, the government may introduce additional measures to further enhance the electronics manufacturing ecosystem and attract more investments.
