NEW DELHI (Realist English). India’s government has approved the first set of projects under its $2.7 billion Electronics Component Manufacturing Scheme (ECMS) — a major step toward reducing the country’s dependence on imported parts and strengthening domestic production amid growing global trade tensions.
The seven newly approved projects will receive 55.3 billion rupees ($626 million) in government grants to establish local manufacturing facilities for key components such as camera modules, multi-layer printed circuit boards (PCBs), and high-density electronic parts used in smartphones, wearables, medical devices, and aerospace systems.
India’s Minister for Electronics and IT Ashwini Vaishnaw said the new plants would meet 20% of domestic demand for PCBs and 15% of demand for camera module sub-assemblies, with 60% of total output destined for export markets.
Building a domestic supply chain
Electronic goods were India’s third-largest export category in fiscal year 2025, rising eightfold in a decade to $38.6 billion, according to government data. However, those gains were nearly offset by $36.8 billion in imports of components, nearly 40% of which came from China, followed by Hong Kong at over 16%.
India’s total electronics components market is projected to reach $150 billion by 2030, while the broader electronics market — including finished products — could hit $500 billion, according to government and EY estimates. Globally, the electronics market is valued at $1.8 trillion, with China controlling about 60% of production.
The ECMS has attracted 249 applications from domestic and international companies, with proposed investments totaling 1.15 trillion rupees ($14 billion). The initiative forms part of Prime Minister Narendra Modi’s “self-reliant India” strategy, which seeks to transform the country into a key manufacturing base as multinationals diversify away from China.
India as a rising manufacturing power
India has already emerged as the world’s second-largest mobile phone producer, with companies such as Apple shifting significant portions of their supply chains to the country. Apple’s exports from India surged 42% in 2024 to $12.8 billion, while India overtook China in Q3 2025 to become the top smartphone exporter to the United States, with a 240% increase in manufacturing volumes.
Experts say the ECMS marks a crucial transition from assembly to full-scale component manufacturing. “A mere assembly ecosystem cannot sustain itself without a strong domestic component base,” said Kunal Chaudhary, partner at EY India. “This scheme will strengthen the supply chain, reduce import dependency, and enhance India’s global competitiveness.”
Ashok Chandak, president of the India Electronics and Semiconductor Association, said the initiative would “accelerate India’s rise as a global hub for advanced electronics and semiconductors while ensuring long-term self-sufficiency.”
Analysts note that as both the U.S. and China impose tighter export controls on high-end technology and rare earths, India’s renewed industrial policy could prove pivotal in securing its place in the next phase of global supply chains.
