India’s efforts to deepen its electronics manufacturing ecosystem received a major boost on Friday as the Ministry of Electronics and Information Technology (MeitY) approved 22 new proposals under the Electronic Component Manufacturing Scheme (ECMS), involving projected investments of ₹41,863 crore and an estimated production of ₹2.58 lakh crore.
The approved projects are expected to generate nearly 37,000 jobs, including 33,791 direct employment opportunities, the ministry said. These clearances mark the third tranche of approvals under the Electronic Components Production Incentive (PLI) framework, which aims to reduce import dependence and strengthen domestic capabilities in critical electronic components.
Major beneficiaries include Dixon Technologies, Samsung Display Noida Pvt Ltd, Foxconn’s Yuzhan Technology India Pvt Ltd, Tata Electronics, Motherson Electronics Components and Hindalco Industries. Union IT Minister Ashwini Vaishnaw handed over the approval letters to the companies on December 2.
Dixon and Foxconn take key steps
Dixon Technologies received approval for two projects in the latest tranche. One of them, Kunshan Q Tech Microelectronics in Uttar Pradesh, is a joint venture in which Dixon holds a 51% stake, while the rest of the stake is held by a Singapore-based subsidiary of a Chinese company. The second project, the Dixon Electroconnect optical transceiver unit, will be installed in Madhya Pradesh.
Foxconn’s inclusion is particularly significant as it marks the Taiwanese electronics major’s first foray into the Indian electronic components ecosystem, beyond its well-known role in device assembly. Industry observers see it as a step towards entrenching higher value-added manufacturing in the country.
Focus on components, not just assembly
The latest approvals cover the manufacturing of 11 target product segments covering mobile phones, telecommunications equipment, consumer electronics, automotive electronics, computer hardware and strategic electronics.
Of these, five segments involve bare components such as printed circuit boards (PCBs), capacitors, connectors, housings and lithium-ion cells. Three segments focus on subassemblies including camera modules, display modules and optical transceivers, while the other three cover supply chain inputs such as aluminum extrusion, anode materials and laminates.
MeitY said the projects aim to build a strong domestic value chain for key electronic components – areas where India has traditionally relied heavily on imports, particularly from East Asia.
Pan-India manufacturing footprint
The projects will be implemented in eight states – Andhra Pradesh, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Tamil Nadu, Uttar Pradesh and Rajasthan – underlining the government’s intention to ensure geographically balanced growth in electronics manufacturing.
The third tranche is in addition to the 24 applications approved earlier under the scheme, which together involved investments of ₹12,704 crore. With the latest approvals, the cumulative investment pipeline under the electronic components push has sharply expanded.
Beyond import substitution, the government is also positioning the ECMS as an export-oriented manufacturing initiative. The ministry said the program places strong emphasis on improving the competitiveness of Indian exports of electronic components, a segment that accounts for a significant share of global electronics trade.
