How India is trying to move from assembly to electronics manufacturing power

India’s ambition to become a serious player in global electronics supply chains is entering a new phase. With the approval of 22 fresh proposals under the Electronics Components Manufacturing Scheme (ECMS), the government is signalling that the focus is no longer just on assembling finished devices, but on building the component ecosystem that underpins high-value manufacturing. The latest clearances — involving firms such as Foxconn, Tata Electronics, Dixon and Samsung — offer a window into how India hopes to climb up the electronics value chain.

What is the Electronics Components Manufacturing Scheme?

The Electronics Components Manufacturing Scheme is designed to address a structural weakness in India’s electronics sector: heavy dependence on imported components. While India has made rapid gains in mobile phone assembly over the past decade, especially through production-linked incentives, most high-value components — from printed circuit boards to camera modules and batteries — continue to be sourced from abroad.

ECMS seeks to correct this imbalance by incentivising domestic manufacturing of key electronic components, sub-assemblies and supply-chain inputs. The aim is to reduce import dependence, deepen value addition within India, and make Indian electronics manufacturing more resilient to global supply disruptions.

What the latest approvals tell us

The third tranche of ECMS approvals covers 22 proposals, with a projected investment of about ₹41,863 crore and expected production worth over ₹2.58 lakh crore. According to government estimates, these projects could generate nearly 34,000 new jobs.

A notable feature is the participation of global and domestic majors closely linked to Apple’s supply chain. Companies such as “Foxconn”, “Tata Electronics”, Motherson Electronic Components and ATL Battery Technology India are expected to manufacture components not just for the Indian market, but also for export to Apple’s global production network.

Which components are being targeted?

The approved projects span 11 target segments that are critical to electronics manufacturing.

Five are “bare components”, including printed circuit boards (PCBs), capacitors, connectors, enclosures and lithium-ion cells. These are foundational inputs without which device manufacturing cannot scale.

Three projects focus on sub-assemblies such as camera modules, display modules and optical transceivers — areas where value addition is significantly higher than simple assembly.

The remaining segments cover supply-chain materials such as aluminium extrusion, anode material and laminates, which support both electronics and adjacent sectors like automotive and telecom.

Among the biggest investments are three mobile enclosure projects worth over ₹27,000 crore, nine PCB-related projects worth ₹7,377 crore, and a lithium-ion cell project involving ₹2,922 crore.

Why components matter more than finished products

Electronics manufacturing is fundamentally about ecosystems. As long as components are imported, domestic assembly captures only a small slice of value and remains vulnerable to currency swings, logistics shocks and trade restrictions.

By localising components, India can increase domestic value addition, improve export competitiveness and shorten supply chains. This also makes manufacturing clusters more attractive for global firms looking to diversify production away from East Asia.

The focus on lithium-ion cells is particularly strategic, given their importance not just for smartphones and laptops, but also for electric vehicles and energy storage.

Geography, jobs and industrial strategy

The new approvals are spread across eight states — Andhra Pradesh, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Tamil Nadu, Uttar Pradesh and Rajasthan — reflecting an attempt to avoid excessive geographic concentration.

Tamil Nadu stands out in this tranche. Foxconn’s enclosure manufacturing project in the state alone is expected to create over 16,200 jobs, while Tata Electronics’ enclosure unit will employ around 1,500 people. Other beneficiaries include Dixon and “Samsung”, which is expanding display manufacturing in Noida.

From the government’s perspective, this dispersion supports balanced industrial growth while building regional electronics clusters.

How ECMS fits into India’s larger electronics push

ECMS does not operate in isolation. It complements earlier production-linked incentive schemes, as well as India’s longer-term semiconductor ambitions. In October and November 2025, earlier ECMS tranches approved 24 proposals with investments of over ₹12,700 crore, indicating steady momentum.

At the announcement briefing, Union IT Minister Ashwini Vaishnaw emphasised faster execution, design capabilities and global quality standards, urging firms to adopt Six Sigma practices. The stress on design teams is significant: without domestic design capability, manufacturing risks remaining low-margin and easily replaceable.

The challenges that still lie ahead

Despite the scale of announced investments, success is not guaranteed. Component manufacturing is capital-intensive, technologically demanding and sensitive to quality and reliability. Competing with entrenched East Asian suppliers will require consistent policy support, skilled manpower, reliable power, and efficient logistics.

There is also the question of depth. While enclosures and PCBs are essential, the toughest segments — advanced semiconductors, high-end displays and precision components — will test India’s ability to sustain long-term industrial policy.

Why ECMS matters for India’s global ambitions

If ECMS delivers as intended, it could mark a shift in India’s role in global electronics — from an assembly base to a manufacturing hub with meaningful value addition. That transition is crucial if India wants electronics to become a durable driver of exports, jobs and technological capability.

The latest approvals suggest that the building blocks are being put in place. The real test will be whether these projects translate into competitive, export-oriented production — and whether India can keep moving up the value chain rather than stopping halfway.