Centre Gets INR 8,000 Cr Worth Proposals For Electronics Manufacturing

The Centre has reportedly received proposals worth INR 7,500 Cr to INR 8,000 Cr under the electronics components manufacturing (ECM) scheme. 

A report by Business Standard said that the ministry of electronics and information technology (MeitY) has received around 100 applications from Indian and international companies to set up electronics manufacturing units in the country. 

Citing sources, the publication reported that the ministry has started the process of vetting the application and will start approving the proposals in batches. 

MeitY launched the ECM scheme in March to boost the production of electronics components in the country with an outlay of INR 22,919 Cr. The scheme aims to attract large investments worth INR 59,350 Cr and generate domestic production worth INR 4,56,500 Cr within the six year tenure of the scheme. It also aims to generate 91,600 jobs. 

Under the ECM scheme the Centre will provide incentives for the production of camera modules, Li-ion batteries for digital applications, multi-layer printed circuit boards and enclosures for mobile, IT hardware products and related devices, among others. 

The incentive structure of the scheme includes turnover incentives, capex incentives and hybrid incentives. Besides, a part of the turnover incentives and capex incentives is linked with employment. 

The scheme was launched as part of the Centre’s vision to make India a global manufacturing hub. On the back of programmes like production linked incentive scheme for large scale electronics manufacturing, electronics manufacturing in the country has grown by leaps and bounds over the past decade.

According to government data, domestic production of electronic goods increased to INR 9.52 Lakh Cr in FY24 from INR 1.90 Lakh Cr in FY15, while exports of electronics goods from India surged to INR 2.41 Lakh Cr in FY24 from INR 0.38 Lakh Cr in FY15. Meanwhile, in FY25, electronics became the third largest commodity exported from India. 

India also became the second largest manufacturer of smart phones in FY24 producing 2.45 Bn units worth INR 4.1 Lakh Cr in the period. From Google to Apple, all major smartphone companies are manufacturing in India now.

Now, the ECM scheme aims to further increase domestic manufacturing in the sector.