Indigenous magnet unit, localisation targets and broader component push signal shift beyond electronics assembly.
The Centre approves 29 electronics component manufacturing projects worth ₹7,104 crore under the fourth tranche of the Electronics Component Manufacturing Scheme (ECMS).
The aim is to expand domestic capabilities across critical parts of the electronics value chain.
The approvals include India’s first rare earth permanent magnet manufacturing unit, with an investment of around ₹700 crore.
The project uses fully indigenous technology and intellectual property and targets development of capabilities across the mineral-to-magnet value chain, where global supply remains concentrated.
The 29 projects cover 16 electronics component segments, including lithium-ion cells, flexible and high-density printed circuit boards (PCBs), connectors, display modules, relays and passive components.
The investments are distributed across eight states, with Karnataka and Maharashtra accounting for the highest number of projects.
The government estimates the projects will generate over 14,000 direct jobs and drive production worth ₹84,515 crore.
These approvals form part of a broader ECMS pipeline covering 75 projects with a total proposed investment of ₹61,671 crore.
Expands domestic manufacturing across critical components
The approvals push localisation across several import-dependent components.
Domestic production is expected to meet around 50 percent of India’s PCB demand and about 61 percent of lithium-ion battery demand.
Relays are expected to meet 100 percent of domestic demand, with surplus capacity enabling exports.
Domestic manufacturing of rare earth magnets is expected to meet around 25 percent of demand.
The approved projects also include components for the electric vehicle ecosystem, such as inductors and transducers, along with capital equipment required for electronics manufacturing.
Signals shift towards component-level manufacturing
The latest tranche reflects a shift in India’s electronics manufacturing strategy towards component-level production.
The approach evolves from finished products to modules and sub-modules and now focuses on manufacturing core components.
The expansion of domestic component manufacturing improves supply predictability and reduces dependence on imports, particularly in segments where sourcing remains concentrated.
It also creates opportunities for OEMs, EMS players and channel partners to participate across components, embedded systems and design-led manufacturing.
Recent progress in semiconductor manufacturing, including the rapid rollout of facilities by Micron, indicates a broader push to strengthen domestic capabilities across the electronics value chain.
With cumulative approvals under ECMS crossing ₹61,671 crore, the latest tranche strengthens India’s push to expand electronics manufacturing beyond finished products into core components.
Discover more from PressNewsAgency
Subscribe to get the latest posts sent to your email.