Indian Economy News

Govt clears 29 investment proposals worth US$ 0.77 billion under Electronics Component Manufacturing Scheme

The government has sanctioned 29 applications in the fourth tranche of the Electronics Component Manufacturing Scheme (ECMS) with cumulative investments of Rs. 7,104 crore (US$ 0.77 billion), marking the latest in the series of developments in the electronics manufacturing space in the country. These approvals are expected to support the creation of 14,246 new jobs, besides enabling the manufacture of electronics components worth Rs. 84,515 crore (US$ 9.14 billion). With this, the Ministry of Electronics and Information Technology (MeitY) has sanctioned a total of 75 applications in the scheme with this tranche of approvals. This development is in line with the Centre’s efforts to strengthen the local component industry, which is a key focus area of the government in the electronics manufacturing space. This is also in line with the government’s efforts to build a Rs. 47,29,590 crore (US$ 500 billion) electronics manufacturing industry within the country by 2030-31.

The policy push comes at a time when electronics has emerged as India’s third largest and fastest-growing export segment in FY25, growing significantly from the seventh position in FY22. In the first half of FY26, electronics export growth stood at Rs. 2,09,994 crore (US$ 22.20 billion). The sector is expected to become the second-largest export segment in the country. The increase in the outlay of ECMS to Rs. 40,000 crore (US$ 4.33 billion) in the Union Budget 2026-27 is likely to further strengthen domestic component manufacturing. The Government’s push on product design, machine design, and Six Sigma quality standards is also likely to boost the competitiveness of the sector. The policy is likely to strengthen the supply chain of the sector and generate employment on a large scale.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.