India’s Electronics Manufacturing Boom Scheme 2025
India’s Electronics Component Manufacturing Scheme:-
India is fast emerging as a global electronics manufacturing hub, driven by the rising demand for smartphones, smart TVs, laptops, electric vehicles (EVs), and next-generation technologies like 5G, IoT, and AI-enabled devices. As consumers and industries rapidly digitize, the backbone of this transformation lies in the availability and quality of core electronic components—from semiconductors to PCBs, sensors, and integrated circuits.
However, for years, India has remained heavily dependent on imports—particularly from China, Taiwan, and South Korea—for essential electronic components. This over-reliance not only increases the trade deficit but also poses a national security and supply chain risk, especially in times of geopolitical tension and global disruptions (as witnessed during the COVID-19 pandemic).
Recognizing this urgent need to localize component manufacturing, the Government of India launched the Electronics Component Manufacturing Scheme. This scheme provides financial incentives, infrastructure support, and policy stability to encourage domestic production of high-demand electronic parts. It aims to transform India from a major importer to a self-reliant producer and exporter of critical components.
This visionary scheme is a central pillar under India’s broader “Make in India” and “Atmanirbhar Bharat” (Self-Reliant India) missions. These initiatives strive to not only boost domestic manufacturing but also position India as a trusted, cost-competitive, and innovation-driven player in the global electronics value chain.
By empowering local companies, startups, and global manufacturers to set up component manufacturing units in India, the Electronics Component Manufacturing Scheme marks a game-changing leap toward economic sovereignty, job creation, and high-tech industrial growth.
🎯 Objective of the Electronics Component Manufacturing Scheme
The main aim of the Electronics Component Manufacturing Scheme is to:
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Promote local manufacturing of critical components.
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Reduce dependence on Chinese and other foreign imports.
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Make India a trusted global supplier of components.
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Create a sustainable ecosystem of MSMEs, large units, and supply chains.
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Strengthen India’s position in the global value chain of electronics.
💰 Incentives and Benefits Under the Scheme
Here are the key financial and strategic incentives offered:
🔹 Capital Subsidy:
Up to 25% capital subsidy is provided for setting up or expanding units that manufacture electronic components.
🔹 Production Linked Incentives (PLI):
Eligible manufacturers can get 4-6% incentives on incremental sales over a base year for 5 years.
🔹 Tax Benefits:
Income tax relaxations, custom duty exemptions, and GST reimbursements for certain components.
🔹 Infrastructure Support:
Support for setting up Electronics Manufacturing Clusters (EMCs), common facilities, testing labs, and logistics.
🔹 Fast-track Approvals:
Dedicated single-window clearances for land, power, and environment for fast deployment.
🔧 Components Covered Under the Scheme
The scheme supports the manufacturing of strategic and high-demand components, including:
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Semiconductor devices
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Active & passive components (resistors, capacitors, etc.)
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PCB assemblies
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LED chips, displays
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Sensors, IoT modules
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Battery packs for electronic devices
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Optical fibres and cables
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Radio frequency (RF) components
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Diodes, transistors, ICs
🌐 Global Context: Why This Scheme Matters
Globally, countries like China, Taiwan, South Korea, and the USA dominate electronics component manufacturing. India imports nearly $70 billion worth of electronic components annually.
With geopolitical tensions and global supply chain disruptions (as seen during COVID-19), nations are now looking for diversified and stable suppliers. India, with its talent pool, cost advantages, and government push, is ideally placed to fill this gap.
🧠 Who Can Apply?
The scheme is open to:
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Large Corporations (Indian and foreign)
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Startups & MSMEs
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Joint Ventures
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Electronics Manufacturing Service (EMS) Providers
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Entities with a minimum investment threshold (varies by product type)
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📈 Expected Impact by 2026
| Impact Area | Projection |
|---|---|
| Total Investment Expected | ₹25,000+ crore |
| Jobs Generated | Over 1 lakh direct jobs |
| Import Reduction | 30-40% within 3 years |
| Export Potential | $15 billion by 2026 |
| MSME Participation | 50% of total projects |
🏭 States Actively Participating
Several Indian states have aggressively pushed for infrastructure and incentives to attract electronics manufacturing:
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Uttar Pradesh (Noida – EMS & PCB)
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Tamil Nadu (Chennai – Semiconductor & EV components)
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Karnataka (Bangalore – IoT & chip design)
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Andhra Pradesh (EMC clusters)
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Gujarat & Maharashtra (Display fabs & chip units)
Each state provides additional land, power, tax incentives, and ease-of-doing-business reforms to supplement the central scheme.
🧩 Scheme vs Other Electronics Initiatives
| Initiative | Focus Area |
|---|---|
| PLI Scheme | Output-based incentive for large units |
| SPECS | Capital subsidy on component units |
| EMC 2.0 | Infrastructure for component units |
| National Policy on Electronics (NPE) | Overall electronics growth framework |
| This Scheme | Component-level manufacturing |
This Electronics Component Manufacturing Scheme is specifically focused on critical component-level self-reliance and import substitution.
💼 Role of Private Sector and Startups
The government encourages:
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Joint ventures with global players.
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Technology transfer agreements.
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Use of domestic design and R&D.
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Building smart manufacturing capabilities (AI, automation).
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Promoting design-led manufacturing especially for IoT, smart devices, wearables, EVs.
India is seeing a rise in hardware-focused startups—this scheme gives them a launchpad to scale up.
📅 Timeline and Application Process
📝 Application Period:
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The scheme remains open for 3 years from launch (2024–2027).
📂 Documents Required:
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Detailed project report (DPR)
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Financial projections & investment plan
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Factory layout, machinery list
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Company registration and PAN
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MoU (in case of JV)
⚙️ Approval Process:
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Scrutiny by Ministry of Electronics & IT (MeitY)
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Review by empowered committee
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Fund disbursement in milestone-based stages
🌟 Success Stories So Far
Several Indian and foreign companies have already committed investments under the scheme:
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Tata Electronics: Large investment in chip and component plants in Tamil Nadu.
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Vedanta-Foxconn JV: Targeting semiconductor and display fabs.
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Sahasra Semiconductors: India’s first memory chip assembly unit.
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Polymatech: LED chips & optical semiconductors.
These success stories prove the massive potential of the Electronics Component Manufacturing Scheme.
🔮 Future Outlook
With global electronics demand set to double by 2030, this scheme ensures:
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India emerges as a trusted supplier to the world.
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Millions of jobs are created across the value chain.
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Domestic startups get the boost they need to innovate.
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A robust, resilient electronics ecosystem flourishes.
If India plays its cards right, we could become the next Taiwan of electronics components within a decade.
India’s Electronics Component Manufacturing Scheme is a landmark initiative that aligns with national priorities of job creation, innovation, and self-reliance. For manufacturers, investors, and startups, this is the ideal time to ride the wave of India’s electronics revolution. With strong government support, infrastructure, and global interest, the future of India’s electronics sector looks brighter than ever.
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FAQs:Electronics Component Manufacturing Scheme
Ans: It focuses on boosting domestic manufacturing of key electronic components to reduce imports and become self-reliant.
Ans: Indian companies, foreign investors, startups, MSMEs, and joint ventures meeting the investment criteria.
Ans: Yes. While the PLI scheme rewards final product sales, this one offers capital support for components used in electronics.
Ans: Up to 25% capital subsidy and 4-6% incentive on incremental sales.
Ans: Tamil Nadu, Uttar Pradesh, Karnataka, and Gujarat are top-performing states with additional incentives.
