India Expands Electronics Manufacturing Push with Second ECMS Approval Round

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The central government has approved the second tranche of ECMS proposals, clearing 17 new electronics manufacturing projects worth INR 71.72 billion (US$808 million). The latest announcement aligns with India’s ambition to move up the value chain and establish its competitive manufacturing capabilities globally.

India approved the second tranche of proposals under the Electronics Components Manufacturing Scheme (ECMS) to further strengthen its domestic electronics supply chain. The latest round includes 17 new projects, representing INR 71.72 billion (US$808 million) in committed investments, INR 651.11 billion (US$7.33 billion) in projected output, and the creation of 11,808 direct jobs, as per the announcement made on November 17, 2025.

According to the Union Ministry of Electronics and Information Technology (MeitY), ECMS aims to deepen value chain integration and transition India from primarily a device-assembly hub to a competitive global manufacturer of components and sub-systems. The initiative aligns with India’s broader goal of building a US$500 billion electronics manufacturing industry by 2030-31.

Pan-India manufacturing expansion

Under the ECMS initiative, newly approved manufacturing units are spread across nine states, i.e., Goa, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Tamil Nadu, Uttar Pradesh, and Andhra Pradesh.

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This distribution indicates India’s intent on regional dispersion of manufacturing capacity, reducing dependence on major metropolitan hubs and supporting high-skill job creation in emerging industrial clusters.

For businesses, the wider geographic spread signals stronger supply chain diversification, reduced logistics concentration, and expanded opportunities for ecosystem partnerships across multiple states.

Component categories approved under the second tranche

The latest ECMS approvals cover a diverse range of high-demand components and sub-assemblies across priority sectors, including smartphones, IT hardware, wearables, telecom, electric vehicles (EV), defence, medical electronics, and renewable energy.

1. Optical transceivers (SFP modules)

Approved companies: Jabil Circuit India Pvt. Ltd., Zetchem Supply Chain Services Pvt. Ltd.

These approvals enable the domestic production of SFP optical transceivers, which serve as key components in telecom networks, enterprise infrastructure, and data centre applications.

2. Precision oscillators for communication and industrial electronics

Approved company: Rakon India Pvt. Ltd.

Precision oscillators provide essential timing functions for communication devices, computing equipment, and industrial electronic systems.

3. Enclosures for laptops, wearables, and IT hardware

Approved company: Aequs Consumer Products Pvt. Ltd.

The approved project supports the manufacturing of high-grade enclosures required for laptops, wearables, and other IT hardware products.

4. Camera modules for consumer, automotive, and IoT applications

Approved companies: ASUX Safety Components India Pvt. Ltd., Uno Minda Ltd., Syrma Mobility Pvt. Ltd.

These camera modules are used in smartphones, electric vehicles, home automation devices, and safety-related electronic systems.

5. Electronic connectors for industrial and high-performance devices

Approved company: TE Connectivity India Pvt. Ltd.

Electronic connectors manufactured under this approval cater to sectors such as industrial automation, defence systems, and precision equipment.

6. Multi-layer printed circuit boards (PCBs)

Approved companies: Hi-Q Electronics Pvt. Ltd., Secure Circuits Ltd., Zetfab India Pvt. Ltd., Ehoome IOT Pvt. Ltd., Sierra Circuits (India) Pvt. Ltd., Meena Electrotech Pvt. Ltd., AT & S India Pvt. Ltd., Micropack Pvt. Ltd., Infopower Technologies Pvt. Ltd.

The approvals for multi-layer PCB manufacturing strengthen domestic capacity for a component used across a wide range of electronics, including consumer devices, industrial machinery, automotive systems, and medical equipment.

India’s semiconductor advancement: Launch of ARKA-GKT1 edge chip

In a parallel announcement, India unveiled the ARKA-GKT1, its first-generation energy-efficient edge silicon chip, developed jointly by Cyient Semiconductors and Azimuth AI. The chip integrates computing cores, hardware accelerators, secure sensing, and power-efficient design into a compact Platform-on-a-Chip (PoC) architecture.

The new chip delivers up to 10x higher performance while reducing system cost and complexity, making it suitable for smart cities, industrial IoT, energy storage systems, and utility management. This milestone reflects India’s growing shift from service-led semiconductor participation toward product innovation and IP creation.

Also Read: Semiconductor Industry in India: Incentives and Key Players

An overview of electronics manufacturing target segments

The ECMS initiative supports a broad spectrum of electronic components, sub-assemblies, and capital equipment essential for advanced electronics production. The scheme is divided into five structured segments:

A) Sub-assemblies

  • Display module sub-assemblies
  • Camera module sub-assemblies

B) Bare components

  • Non-SMD passive components
  • Electro-mechanicals
  • Multi-layer PCBs
  • Li-ion cells for digital applications (excluding storage and mobility)
  • Enclosures for mobile devices, IT hardware, and related electronics

C) Selected high-value components

  • HDI/MSAP/flexible PCBs
  • SMD passive components

D) Supply chain ecosystem & capital equipment

  • Supply chain elements supporting sub-assemblies and bare components (Segments A, B, and C)
  • Capital goods and machinery used in electronics manufacturing, including their sub-assemblies and components

E) Telecom sub-assembly

  • Optical transceivers, including SFP (small form-factor pluggable) units

Application window for ECMS segments

For target segments A, B, C, and E, the application window closed on 30 September 2025. However, for segment D, the application window remains open until April 30, 2027. This staggered application timeline ensures that priority component categories are fast-tracked.

Project approvals and progress under first tranche

On October 27, 2025, India approved seven projects under the first tranche of the ECMS, with a combined investment commitment of INR 55.32 billion (US$623.5 million). The application window for the first tranche of the ECMS for target segments A, B, C, and E was open from May 1, 2025, to September 30, 2025.

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The central government said it had received 249 applications, reflecting proposed investments of INR 1.15 trillion (US$12.96 billion).

Launched on April 8, 2025, the scheme has a total outlay of INR 229.19 billion (US$2.58 billion) and a six-year tenure, including an optional one-year gestation period. The ECMS aims to reinforce India’s electronics manufacturing growth by pursuing the following objectives:

  • Develop a self-reliant and globally competitive electronics component ecosystem.
  • Attract domestic and foreign investments across the component value chain.
  • Increase domestic value addition in electronics manufacturing.
  • Strengthen India’s participation in global value chains by building deeper manufacturing capabilities.

Conclusion

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With substantial new investments, a wider geographic spread of production facilities, and expanded coverage of high-value components, the ECMS scheme will boost India’s transition from an assembly-led ecosystem to a more integrated, component-focused manufacturing base. Complemented by advancements such as the launch of the ARKA-GKT1 edge chip, India is steadily building the infrastructure and technological depth needed to support long-term growth in electronics and semiconductor production. For businesses, these developments translate into a more resilient domestic supply chain, increased opportunities for collaboration, and a policy environment that continues to support large-scale, innovation-driven investment.

(US$1 = INR 88.72)

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