India's Electronics Drive Grows with Rs 8,000 Cr Investment Plans

The Government of India has attracted investment proposals between Rs. 7,500 crore to Rs. 8,000 crore under the Electronics Components Manufacturing Scheme (ECMS), a government scheme to bring forward local production of key electronic components and assembly facilities, a Business Standard report said.

A high-ranking government functionary from the Ministry of Electronics and Information Technology (MeitY) has disclosed that close to 100 proposals have been received by Indian as well as foreign firms planning to set up electronics manufacturing units in different parts of the country.

“Evaluations of the applications have already commenced, and the approvals will be made public in batches in late August or early September,” added the official. A special agency for project management is also in process to enable the rollout and monitoring of the scheme.

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The ECMS, which will cost Rs. 22,911 crore overall, is a strategic project under India's overall effort to enhance the electronics manufacturing ecosystem, minimize the reliance on imports, and become a world-class manufacturing hub. The initiative will be implemented within six years and officially opened for application from May 1.

The applicants have to clearly define the job creation that will be generated from their intended investment, with job creation being among the essential evaluation criteria. ECMS involves a broad spectrum of factors fundamental to electronics manufacturing, including printed circuit boards (PCBs), non-surface mount device (non-SMD) components, lithium-ion cells, and other basic components.

While the government inches its way toward the approval stage, the scheme is likely to be a major force in propelling change to India's electronics supply chain and rooting itself in the value chain of the world.