Electronics and IT Minister, Ashwini Vaishnaw on Monday warned the electronics components industry that future approvals and incentive disbursements under the electronics components manufacturing scheme (ECMS) could be halted if companies fail to step up efforts on product design, quality standards, talent development and local supply chains.
Announcing the fourth tranche of approvals under the scheme, Vaishnaw said that beneficiaries that do not invest in design capabilities risk being weeded out. “I am willing to stop any further disbursements or approvals if the industry doesn’t come up with the commensurate efforts,” he said, setting a 15-day deadline for companies to submit a structured plan.
The latest round covers 29 proposals involving fresh investment of Rs 7,104 crore, taking total approved investments under ECMS to Rs 61,671 crore across 75 projects, exceeding the scheme’s initial target. Expected production from approved projects is pegged at nearly Rs 4.52 lakh crore, close to the overall target of Rs 4.56 lakh crore, with over 65,000 jobs envisaged.
Vaishnaw said the government had ensured timely approvals and policy support, and it was now incumbent on industry to match that with execution. “The ball is in the industry’s court… you have to scale up your efforts and ambitions on these aspects,” he said. He added that companies not committing to design capabilities would be weeded out.
The minister also pulled up industry bodies, including the India Cellular and Electronics Association (ICEA), for not presenting a comprehensive plan despite earlier commitments. “In the last meeting the industry had committed that by March-end they will have a proper structured programme… but I don’t see it, so far,” he said, urging associations to coordinate an industry-wide response.
The government has identified four priority areas: in-house product design, adoption of Six Sigma quality standards, structured workforce training, and development of domestic supply chains through regular buyer-seller linkages. Six Sigma is a methodology aimed at minimising defects and ensuring near-perfect output.
Approved projects span a range of components such as lithium-ion cells, capacitors, connectors, display modules, flexible PCBs, inductors, resistors, relays and rare earth magnets, along with capital equipment manufacturing. Companies that have received approvals include Dixon Technologies, VVDN Technologies, TDK India, Vishay Components, Syrma SGS, Tata Electronics Automation, ASM Technologies and Lohum Cleantech, along with several MSMEs.
The latest approvals are expected to generate production worth Rs 84,515 crore and create over 14,000 jobs. The round also includes the country’s first rare earth magnet project covering the refined mineral-to-metal stage, and marks initial progress in domestic manufacturing of SMD passives.
Vaishnaw said the scheme is beginning to deliver import substitution gains, with domestic capacity expected to meet 100% of demand for laminates and relays, about 50% for printed circuit boards, 61% for lithium-ion cells in electronics, and lower shares across connectors, capacitors and rare earth magnets.
Despite these gains, the minister said current efforts on design, quality and skilling remain fragmented and need to be formalised. He said that the electronics sector has remained largely insulated from the West Asia conflict, though rising input costs are being monitored.
On semiconductors, Vaishnaw said rising memory chip prices were driven by global data centre expansion, adding that the Micron facility in India is scaling up. “About 10% of their global manufacturing will happen in this plant… it is scaling up very well,” he said.