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Electronics production plugs into over Rs 41.5k crore investments
The government on Friday approved Rs 41,863 crore of investments by 22 companies under the Electronic Component Manufacturing Scheme (ECMS) and called on the electronics industry to reduce import dependence by deepening domestic sourcing across value chains.
The approved projects—spread across eight states and led by subsidiaries of Foxconn, Tata Electronics, Samsung, TDK, Wipro and Hindalco—are expected to generate production worth Rs 2.58 lakh crore and create 33,791 direct jobs, the Ministry of Electronics and Information Technology (MeitY) said.
The investments will focus on manufacturing key electronic inputs such as multilayer printed circuit boards (PCBs), enclosures, capacitors, optical transceivers, camera module sub-assemblies, and copper clad laminates.
Some high-value products, including lithium-ion cells, aluminium extrusion for mobile enclosures, connectors, and anode materials, will be made in India for the first time.
“Now is the time to put in place the structural building blocks, so that growth can continue for many years,” electronics and IT minister Ashwini Vaishnaw said.
He urged companies to jointly set up common research and development facilities for electrical and mechanical designs, saying the government is willing to provide capital expenditure for these centres. But the industry should provide operational expenses and technical support, he added.
The minister called upon the industry to finalise a clear action plan for expanding design, domestic sourcing, and skilling capabilities over the next six weeks, including immediate deliverables, and the frequency of follow ups.
“We won't release the next tranche of approvals under ECMS unless we have a structured approach to achieving these efforts,” he warned.
Subsidiaries of global contract electronics majors Foxconn and TDK Corporation, design, engineering, manufacturing, and assembly specialists Motherson group and Samsung, battery giant ATL, homegrown players Tata Electronics, Wipro, BPL and Hindalco, and domestic contract manufacturers Dixon and Deki Electronics are among the beneficiaries under the third tranche of ECMS.
To boost domestic sourcing of components, Vaishnaw suggested organising two major buyer-seller meetings, in North and South India.
Industry executives said the Centre has asked companies to organise more meetings with vendors to better demand and quickly tap into global supply chains.
Vaishnaw reiterated his call for the industry to put in place “six-sigma” standards of quality or near-perfection in processes. Globally, six sigma manufacturing aims for less than 3.4 defects per million opportunities by minimising variation, eliminating errors and using data-driven methods to ensure products consistently meet customer needs.
The ECMS scheme has so far approved 46 investments totalling Rs 54,567 crore, that target production worth Rs 3.67 lakh crore and are projected to create nearly 51,000 direct jobs.
Currently, the electronics sector employs 2.5 million people in India, of which 1.4-1.5 million work in mobile phone manufacturing, Vaishnaw said.
Across 22 projects approved in the latest ECMS tranche, Tamil Nadu alone accounts for 23,451 jobs from just three projects, Tamil Nadu Industries Minister T R B Rajaa said.
"This is a massive 69% of these jobs ! Tata Electronics brings 1,500. Motherson adds 5,741, Foxconn contributes 16,210 high end jobs," Rajaa said in a post on social media platform X. All three investments in enclosures for phones are also in the state, he added.
Source: EconomicTimes
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