en.Wedoany.com Report on Mar 31st, The Indian government recently approved 29 electronics manufacturing proposals with a total investment of $751 million, marking a significant step in India's efforts to enhance localization within its electronics industry. These proposals cover a range of products including display modules, rare earth permanent magnets, and connectors, aiming to reduce dependence on imported components and create substantial employment opportunities.
The newly approved electronics manufacturing proposals build upon 46 previously approved applications, bringing the total number of proposals under the ECMS scheme to 75. All projects are expected to involve a total investment of approximately ₹61,671 crore and create over 65,000 direct jobs, highlighting the growth potential of India's manufacturing sector. India's electronics manufacturing industry achieved an output of $125 billion in the fiscal year ending March 2025. The government aims to increase this output to $500 billion by FY2031, supported by schemes like the Production Linked Incentive (PLI) and ECMS.
The newly approved projects are expected to generate production output worth ₹84,515 crore and create an additional 14,246 direct jobs. Investments span 16 product categories, including mobile manufacturing, telecom infrastructure, and consumer electronics. Key projects include display module manufacturing by Dixon Display Technologies Private Limited and Wanda Technologies Private Limited, and a rare earth permanent magnet facility by Lohum Cleantech – India's first such project, which will help reduce imports of critical materials.
Other approved projects involve several domestic and international companies. For instance, VVDN Technologies will manufacture antennas and heat sinks, while Molex India, Terminal Technologies, SFO Technologies India, and Amphenol FCI India will focus on warehousing production. In relay manufacturing, approvals were granted to O/E/N India, Permanent Magnets Ltd., among others. Passive component production will be led by Vishay Components India. In the energy storage sector, Munoth Lithium Batteries will produce lithium-ion batteries, TDK India will manufacture inductors, and Syrma Strategic Electronics will produce flexible printed circuit boards.
To strengthen the supply chain, Syrma Components and Ratnaveer Precision Engineering have been approved to manufacture laminates, while Dhruv Industrial Products will produce metallized films for capacitors. These approvals include several firsts for India's electronics ecosystem, such as the first SMD passive component factory, the first flexible PCB manufacturing facility, and the first rare earth permanent magnet plant, which are expected to boost domestic value addition. Union Minister for Electronics and Information Technology Ashwini Vaishnaw stated, "Sustaining industry growth requires a focus on domestic design capabilities, local supply chains, quality standards, and workforce development." MeitY Secretary S. Krishnan emphasized the importance of rapid implementation, while Pankaj Mahindroo of the India Cellular and Electronics Association noted that increased ECMS expenditure has boosted market confidence.
The expansion of ECMS aligns with India's industrial strategy to attract global investment and leverage supply chain shifts. The government also plans to introduce new incentives for mobile phone manufacturing, which could benefit companies like Intel and Samsung. With policy support, growing investment, and corporate participation, India is steadily becoming a crucial link in the global electronics supply chain. The approval of these electronics manufacturing proposals is a key initiative in its industrial upgrading efforts.
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