India is set to embark on a significant initiative in electronics component manufacturing. The government has invited both local and international firms to submit proposals for the production of these components. Electronics and IT Minister Ashwini Vaishnav announced that the ministry received an overwhelming number of proposals, which are projected to generate an investment of approximately ₹1.15 lakh crores. The government’s original goal was to achieve component production worth ₹4.56 lakh crores through these investments.
Jagran Bureau, New Delhi. Following the successful production of mobile phones and semiconductors, India is now preparing to develop a large-scale electronics component manufacturing sector. The government has extended an invitation to both domestic and foreign companies to put forth their proposals for this initiative, and the response has exceeded expectations. The deadline for submissions was September 30.
Minister Ashwini Vaishnav indicated that the ministry had initially set a target of ₹59,350 crores under the Electronics Component Manufacturing Scheme (ECMS). However, due to the substantial interest shown by the companies, the expected investment has surged to ₹1.15 lakh crores.
While the government had aimed for a total manufacturing output of ₹4.56 lakh crores from component investments, current estimates suggest that this figure could reach as high as ₹10.34 lakh crores. This surge in investment and production is anticipated to create approximately 1.41 lakh jobs across various sectors.
Incentives Targeted at ₹22,919 Crores for Companies
The ECMS is designed to span six years, during which the government plans to allocate incentives worth ₹22,919 crores to manufacturing firms. However, if all the proposals are approved for production, the government may need to increase this incentive to ₹41,468 crores. The construction of components is expected to commence as early as next year, following the release of the ECMS notification in April of this year.
Approval of Ten Projects
Vaishnav noted that the country will soon be capable of producing a wide range of electronics components, ranging from those used in rockets to those found in laptops. He emphasized that not only will components be manufactured in India, but efforts will also be made to produce their raw materials domestically, fostering an ecosystem conducive to electronics product manufacturing. India initially made strides in mobile phone production, followed by the introduction of a semiconductor manufacturing scheme that has already seen the approval of ten projects, collectively investing ₹1.60 lakh crores in the nation.
Initiation of the Second Phase of the Semiconductor Mission
The second phase of the semiconductor mission has officially commenced, generating a favorable response from the global industry. India, which previously relied heavily on imports for mobile phone production, has now emerged as the second-largest mobile phone manufacturer worldwide. Over the past five years, the country has recorded an impressive annual growth rate of 57 percent in mobile phone exports.
Breakdown of Components and Proposed Investment under ECMS
Equipment Name – Proposed Investment (in Crore)
- Display Module Sub Assembly- 8642
- Camera Module Sub Assembly- 6205
- Non-SMD Passive Components- 1608
- Electro Mechanicals- 14362
- Multi-layer PCB- 14150
- Li-ion Sales for Digital Applications- 4516
- Enclosure for Mobile, IT Hardware- 35813
- HDI-MSAE-Flexible PCB-16542
- SMD Passive Components- 535
- Sub Assel Supply Chain-Bair Components- 9226
- Capital Goods – 2103
- Optical Transceiver- 1645
