The Ministry of Electronics and Information Technology (MeitY) has notified the Electronics Components Manufacturing Scheme, marking a significant step towards strengthening India’s position as a global hub for electronics manufacturing.
Addressing a press conference in New Delhi, Ashwini Vaishnaw, Union Minister of Electronics and Information Technology, Information and Broadcasting and Railways, stated that the notification of the Electronics Components Manufacturing Scheme, is in continuation of the recent Cabinet decision. He further emphasised, “Our government has always been open-minded, consultative, and inclusive. We take everyone’s views into account before finalising any law or policy.”
The minister also highlighted the sector’s impressive growth trajectory. In the last financial year, smartphone exports surpassed Rs 2 trillion, with iPhone exports alone accounting for approximately Rs 1.5 trillion. Over the past decade, electronics production has grown five-fold and exports have grown more than six-fold, with export CAGR exceeding 20 per cent and production CAGR over 17 per cent.
He further stated, “Within a short time, the electronics manufacturing ecosystem—comprising component manufacturers and a diverse range of players—has developed substantially. Today, there are more than 400 production units, both big and small, manufacturing a variety of components.”
Reflecting on global industry trends, the minister said that India’s journey in electronics manufacturing has evolved through distinct phases: beginning with finished goods, progressing to sub-assemblies, and now entering the critical phase of deep component manufacturing. The sector is steadily advancing into this third phase, which marks a significant leap in value addition, self-reliance, and ecosystem depth.
Outlining the structure of the scheme, the minister mentioned that it is designed as a horizontal initiative with benefits spanning multiple sectors such as consumer electronics, medical devices, automobiles, power electronics, and electrical grids, thereby creating a strong multiplier effect across the economy. The scheme focuses particularly on passive electronic components, which will be supported under the new initiative. In contrast, active components fall under the purview of the India Semiconductor Mission (ISM). The indicative list of passive components includes resistors, capacitors, connectors, inductors, speakers, relays, switches, oscillators, sensors, films, lenses, and many more—underscoring the depth and breadth of the scheme.
Recognising the importance of precision tools and capital goods in manufacturing, Vaishnaw announced that the scheme will also support the design and manufacturing of capital equipment used in electronics production. “Just like the Semiconductor Mission encouraged companies like Applied Materials and Lam Research to invest in India, this scheme will promote a similar model for the electronics component ecosystem.”. Chemical and gas majors such as Linde has already begun establishing facilities in India, and several global players are in discussions to join the ecosystem.
Highlighting the structural nuances of the components sector, the minister noted that electronic component manufacturing typically requires higher investment and has a longer gestation period compared to finished goods. Accordingly, the scheme will offer three incentive structures:
- Turnover-linked incentive
- Capex-linked incentive
- Hybrid incentive model
Moreover, the minister emphasised that employment generation will be a mandatory requirement for all applicants, including both component manufacturers and capital equipment producers. This emphasis on job creation underlines the government’s continued commitment to inclusive growth and the development of a robust electronics manufacturing ecosystem in India.
