Govt gets investment proposals worth ₹16,000 crore under electronics components scheme

The government has received investment proposals worth around ₹16,000 crore under its Electronics Component Manufacturing Scheme (ECMS), PTI reported on Thursday, citing people familiar with the matter.

The government had opened applications for the scheme on May 1 to boost domestic manufacturing of electronic components and sub-assemblies.

“Received proposals worth around ₹16,000 crore under ECMS,” PTI quoted an official source as saying.

The person cited above said that the approval process has started, and shortlisted projects are expected to be announced in September.

An industry body also confirmed the development based on discussions with government officials and industry participants, according to PTI.

The scheme has reportedly attracted interest from both domestic and foreign companies.

A PTI report earlier suggested that Tata Electronics, Dixon Technologies, and Foxconn were among the major firms showing interest.

Dixon recently signed agreements with Chinese electronic component firms Chongqing Yuhai Precision Manufacturing Co Ltd and the Indian arm of Kunshan Q Technology to manufacture and sell components used in devices such as mobile phones and laptops.

Approved by the Union Cabinet in March with a financial outlay of ₹22,919 crore, the scheme aims to attract large-scale investments into the electronics components ecosystem, enhance domestic value addition, and integrate Indian companies with global value chains.

According to an official readout, the scheme is expected to draw investment of ₹59,350 crore, generate production worth ₹4,56,500 crore, and create around 91,600 direct jobs, besides numerous indirect employment opportunities, over six years.

The largest portion, ₹21,093 crore, is earmarked for sub-assemblies such as camera modules, multi-layered printed circuit boards (PCBs), and passive components mounted on PCBs. Around ₹1,712 crore is allocated for parts used in sub-assemblies and capital goods for electronics manufacturing.

The government has opened the application window for categories A, B, and C for three months starting May 1, and for two years for category D items.