India has taken a decisive step to deepen its electronics value chain. The government has approved the first seven projects of the Electronics Component Manufacturing Scheme (ECMS), with a joint investment of ₹ 55,320 million (≈ 538.6 million euros), an expected production of ₹ 444,060 million (≈ 4,323.1 million euros), and the creation of 5,195 direct jobs. The initial batch focuses on multi-layer and HDI printed circuit boards (PCBs), camera module subassemblies, copper-clad laminates (CCL), and polypropylene film for capacitors: essential parts for mobile devices, automotive, telecommunications, medical equipment, and industry.
A New Twist to the “Basis” of Electronics
The ECMS was notified on April 8, 2025, with a fund allocation of ₹ 229,190 million (≈ 2,231.3 M€), a six-year horizon, and the possibility of a one-year maturity extension per project. Its declared goal is to build a self-sufficient ecosystem of electronic components within the country, attract domestic and international investments, and enhance local added value by integrating Indian industry into global supply chains from critical inputs. Starting with advanced PCBs, laminates, and dielectric materials helps reduce dependencies and shorten timelines in sectors where the component makes the difference between assembling and truly manufacturing.
Macro Perspective: Commitments Doubling the Goal and a Strong Export Push
By September 30, 2025, the investment commitments accumulated under ECMS reach ₹ 11.535 trillion (or ₹ 1.15 lakh crore), equivalent to ≈ 11,230.0 M€, nearly double the original target (₹ 5,935 billion; ≈ 5,778.0 M€). Looking six years ahead, production is projected at ₹ 103.475 trillion (≈ 100,738.0 M€), with an estimated disbursement of incentives of ₹ 4.147 trillion (≈ 4,037.1 M€) compared to the initial forecast of ₹ 2.281 trillion (≈ 2,220.2 M€). This quantitative leap confirms investors’ appetite for the core capacity — the “bricks” of electronics — and reinforces India’s ambition to scale up in the global chain.
This momentum aligns with a favorable tailwind. Electronics became the third-largest export category of the country in the fiscal year 2024–25. Sector production increased from ₹ 19.0 trillion in 2014–15 (≈ 18,497.4 M€) to ₹ 113.0 trillion in 2024–25 (≈ 110,011.0 M€), while exports grew from ₹ 3.8 trillion (≈ 3,699.5 M€) to ₹ 32.7 trillion (≈ 31,835.0 M€). The mobile phone segment has been a major driver: manufacturing jumped from ₹ 1.8 trillion (≈ 1,752.4 M€) to ₹ 54.5 trillion (≈ 53,058.4 M€), and smartphone exports increased from ₹ 0.15 trillion (≈ 146.0 M€) to ₹ 20.0 trillion (≈ 19,471.0 M€). In 2024, Apple surpassed ₹ 11.099 trillion in iPhone exports (≈ 10,805.3 M€). In the first five months of 2025–26, outward smartphone sales hovered around ₹ 10.0 trillion (≈ 9,735.5 M€).
Key Players and What They Will Produce
The seven approved projects — located in Tamil Nadu, Andhra Pradesh, and Madhya Pradesh — outline a scale and technology push in PCBs, optics, and materials. The key figures (converted to euros) are:
- Kaynes Circuits India Pvt. Ltd. (Tamil Nadu)
- Multilayer PCB (ML PCB): investment ₹ 10,400 million (≈ 10.1 M€) with a projected production of ₹ 43,000 million (≈ 418.6 M€); 220 jobs.
- Camera module subassembly: ₹ 32,500 million (≈ 31.6 M€) and ₹ 126,300 million (≈ 1,229.6 M€); 480 jobs.
- HDI PCB (high-density): ₹ 168,400 million (≈ 163.9 M€) and ₹ 45,100 million (≈ 439.1 M€); 1,480 jobs.
- Copper Clad Laminate (CCL): ₹ 116,700 million (≈ 113.6 M€) and ₹ 68,750 million (≈ 669.3 M€); 300 jobs.
- SRF Limited (Madhya Pradesh)
- Polypropylene film (key in capacitors): ₹ 49,600 million (≈ 48.3 M€) and ₹ 13,110 million (≈ 127.6 M€); 225 jobs.
- Syrma Strategic Electronics Pvt. Ltd. (Andhra Pradesh)
- Multilayer PCB: ₹ 76,500 million (≈ 74.5 M€) and ₹ 69,330 million (≈ 675.0 M€); 955 jobs.
- Ascent Circuits Pvt. Ltd. (Tamil Nadu)
- Multilayer PCB: ₹ 99,100 million (≈ 96.5 M€) and ₹ 78,470 million (≈ 763.9 M€); 1,535 jobs.
Overall: ₹ 55,320 million (≈ 538.6 M€) in investment, ₹ 444,060 million (≈ 4,323.1 M€) in production, and 5,195 jobs directly created. The diversification — from optics to substrates and dielectrics, including HDI PCBs — addresses multiple critical dependencies: a strategy that enables upstream supplier traction (chemicals, copper foils, photolithography) and amplifies local industry leverage.
Why it Matters: Moving from Assembly to High-Value Manufacturing
Over the past decade, India has transitioned from importing much of its electronics to manufacturing an increasing share domestically, especially in mobiles. The current challenge is to deepen this base with components that pack technology and margin:
- HDI PCBs — with microvias, blind and buried vias, , and fine design rules — are at the heart of compact, high-performance equipment for smartphones, wearables, medical systems, telecom, or aerospace and defense.
- Camera modules encapsulate optics, sensors, and actuators that determine image quality and thus the value proposition in mobiles and IoT devices.
- Copper-clad laminates (CCL) form the base for multilayer PCBs; local production reduces logistics costs and bottlenecks.
- The polypropylene film is an essential input for industrial and consumer capacitors that require stability and low loss.
With these building blocks, ECMS aims to ensure that more of the total device value remains locally, while also enhancing the resilience of the global supply chain against geopolitical tensions or logistical disruptions.
Three Growth Clusters
The geographic distribution is strategic. Tamil Nadu concentrates industrial capacity, talent, and ports; Andhra Pradesh boosts its manufacturing hub with new electronics anchors; Madhya Pradesh provides land and infrastructure for intermediate materials like polymers and films. The proximity between PCB manufacturers and laminate suppliers is key to shortening lead times, improving yields, and reducing wastage.
Incentives and Metrics: Interpreting the Figures
The ECMS design links incentives to investment, employment, and production. Beyond the ₹ 4,147 billion (≈ 4,037.1 M€) over six years, the pipeline already exceeds the initial target comfortably. With committed figures of ₹ 11.535 trillion (≈ 11,230.0 M€), it is reasonable to expect second and third waves of approvals if demand and credit persist. For local manufacturers, this translates into stable capacity to serve exports and replace imports across various subsegments.
Challenges: Fine Chemistry, Machinery, and Yield
Even with tailwinds, the plan faces technical challenges:
- Scaling HDI PCBs and CCL requires advanced chemistry and state-of-the-art machinery (laminators, presses, ovens, laser drilling, AOI) along with strict process control to achieve competitive yields.
- Qualifying suppliers and meeting international standards (UL, IPC, ISO, IATF) involves audits and time.
- Talent management — attracting and retaining experienced specialists — will be as vital as capital expenditures.
- In materials like polypropylene films, polymer consistency and thickness control are crucial to meet automotive and industrial quality requirements.
Market Signal: “From Assembly to Core Manufacturing”
This first wave sends a clear message to the sector: India wants and can manufacture technological cores — not just assemble. If projects stay on schedule, the country will gain autonomy, export capacity, and become more attractive for new investments in adjacent layers (resins, electrolytic copper, chemicals, machinery, testing, and certification). Simultaneously, the increasing export orientation of electronics—already India’s third-ranked export—indicates that offer will find demand in a diversified global market seeking to spread risks.
Conversion Methodology
The euro equivalents are calculated using the ECB reference rate as of 27/10/2025 (1 € = 102.717 ₹; i.e., 1 ₹ ≈ 0.009735 €). The figures are approximate and rounded to one decimal place in millions.
Frequently Asked Questions
What exactly is the ECMS, and how does it differ from other schemes (like PLI)?
The Electronics Component Manufacturing Scheme is a targeted program for components, subassemblies, and materials (PCB, CCL, camera modules, capacitor films). Unlike schemes focused on final products, ECMS supports the foundational sector to raise local value addition, reduce imports, and connect with global chains from critical inputs.
How should I interpret the figures in “crore” and “lakh crore”?
In India, 1 crore = 10 million. So, ₹ 5,532 crore equals ₹ 55,320 million. Meanwhile, 1 lakh crore (one hundred thousand crore) equals ₹ 1 trillion (10^12). Therefore, ₹ 1.15 lakh crore is expressed as ₹ 11.5 trillion. For clarity, the article always shows the equivalent in euros.
What impact can we expect on electronics exports?
Focusing on components should improve the trade balance by substituting imports and creating capacity for export growth beyond mobiles (such as networks, automotive, and medical devices). With electronics now the third-largest export category and a burgeoning production base, the sector is poised to increase value and complexity.
When will tangible industrial results from this initial wave appear?
The projects have a six-year horizon within the scheme, with an optional one-year start-up period. Many plants will likely leverage existing industrial sites and local suppliers, so initial volumes could materialize within 12–24 months, depending on equipment, licenses, process qualification, and contracts with clients.
via: pib.gov.in