India Electronics Component Strategy Signals Manufacturing Shift
India’s electronics manufacturing strategy is entering a more complex and consequential phase, as the country shifts attention from assembling finished devices to building the component backbone that sustains high-value production. Recent government clearances under the Electronics Components Manufacturing Scheme (ECMS) mark a decisive move to strengthen domestic supply chains, signalling that India’s ambitions now extend well beyond final assembly lines.
The latest round of approvals covers 22 component manufacturing projects spread across eight states, underscoring a deliberate effort to anchor electronics production deeper within India’s industrial ecosystem. Policymakers view this shift as essential to reducing long-standing dependence on imported parts, which has limited value addition and exposed manufacturers to global disruptions.India has achieved rapid scale in mobile phone assembly over the past decade, emerging as a major production base for global brands. Yet, industry experts note that most high-value inputs — such as printed circuit boards, camera modules, batteries and specialised materials — have continued to be sourced from overseas suppliers. The Electronics Components Manufacturing Scheme aims to reverse this imbalance by incentivising domestic production of core components, sub-assemblies and upstream materials.
The newly approved proposals collectively represent investments exceeding ₹41,000 crore, with expected output valued at over ₹2.5 lakh crore. Government estimates suggest nearly 34,000 direct jobs could be created as these facilities come online. Several of the projects are closely aligned with global electronics supply chains, positioning India not only as a manufacturing destination for domestic demand but also as a potential export base for international markets.The scope of components being targeted reflects an attempt to address multiple layers of the value chain. Projects include foundational “bare components” such as printed circuit boards, connectors, enclosures and lithium-ion cells, alongside higher-value sub-assemblies like camera and display modules. Supply-chain materials — including aluminium extrusion and laminates — are also part of the mix, linking electronics manufacturing with adjacent sectors such as automotive and telecom.
Urban planners and industrial analysts point out that localising components can fundamentally alter the economics of manufacturing clusters. When critical inputs are produced domestically, supply chains become shorter and more resilient, logistics costs fall, and manufacturers are less exposed to currency volatility and trade restrictions. The focus on lithium-ion cells is particularly significant, given their central role in consumer electronics, electric mobility and energy storage systems.Geographically, the projects are distributed across multiple states, with southern and northern manufacturing hubs playing prominent roles. This dispersion supports regional industrialisation while reducing the risk of excessive concentration in a single corridor. Officials see this as consistent with a broader push for balanced urban and industrial growth.The Electronics Components Manufacturing Scheme also complements earlier production-linked incentives and India’s longer-term semiconductor ambitions. However, challenges remain. Component manufacturing is capital-intensive and quality-sensitive, requiring skilled labour, reliable infrastructure and sustained policy certainty. Competing with entrenched East Asian suppliers will test India’s ability to maintain execution discipline over time.
If successful, the electronics manufacturing push could help India capture greater value from global supply chains, supporting exports, employment and technological capability. The coming years will determine whether the country can continue moving up the value ladder — from assembly floors to a mature, component-driven manufacturing economy.
