Key Takeaways
- 7 electronics component projects approved with Rs 5,532 crore investment
- Expected production worth Rs 36,559 crore and 5,100+ direct jobs
- Major boost for PCB, camera module, and copper clad laminate manufacturing
The Indian government has approved seven major electronics component manufacturing projects under its incentive scheme, marking a significant step toward self-reliance in the electronics sector. The Rs 5,532 crore investment is expected to generate components worth Rs 36,559 crore and create over 5,100 direct employment opportunities.
Project Distribution and Manufacturing Focus
The approved units are strategically located across Tamil Nadu (5 projects), Andhra Pradesh (1), and Madhya Pradesh (1). These facilities will manufacture critical components including multi-layer printed circuit boards (PCBs), HDI PCBs, camera modules, copper clad laminates, and polypropylene films.
Bengaluru-based Kaynes Technology secured four of the seven projects, while SRF Ltd, Syrma Strategic Electronics, and Ascent Circuits Pvt Ltd received one project each.
Overwhelming Industry Response
The Electronics Components Manufacturing Scheme has attracted tremendous interest from both domestic and global companies. According to Meity, 249 applications were received representing Rs 1.15 lakh crore investment commitment, Rs 10.34 lakh crore production potential, and 1.42 lakh jobs to be created.
“This is the highest-ever investment commitment in India’s electronics sector,” the ministry stated.
Domestic Production and Export Potential
Union Minister Ashwini Vaishnaw announced that these plants will significantly reduce import dependency. The projects will meet 20% of domestic PCB demand and 15% of camera module sub-assembly requirements. Copper clad laminate demand will now be completely met domestically.
Notably, 60% of the production from these facilities will be exported, boosting India’s position in global electronics supply chains.
Scheme Implementation and Incentive Structure
The ECMS was officially notified on April 8, 2025 with an outlay of Rs 22,919 crore and will be implemented over six years. The scheme offers both turnover-linked and capital expenditure-linked incentives to approved projects.
Companies must meet annual incremental sales and investment targets to qualify. Employment generation is critical – failure to meet job creation targets results in 1% deduction from eligible incentives for turnover-linked benefits and 5% deduction for capex-linked incentives.
Eligible expenditures cover plant, machinery, tools, dies, R&D, technology purchases, and captive utilities. Additional costs for freight, transport, insurance, and commissioning are capped at 7.5% of base machinery cost, while technology acquisition costs cannot exceed 10%.
