MeitY notifies Electronics Components Manufacturing Scheme

The Ministry of  Electronics and Information Technology(MeitY) has notified the Electronics Components Manufacturing Scheme, marking a significant step towards strengthening India’s position as a global hub for electronics manufacturing.

Addressing a press conference in New Delhi, Union Minister Ashwini Vaishnaw stated that the notification of the Electronics Components Manufacturing Scheme, is in continuation of the recent Cabinet decision. He further emphasized, 'Our government has always been open-minded, consultative, and inclusive. We take everyone’s views into account before finalizing any law or policy.'

Rapid growth in electronics exports
The Minister highlighted the sector’s impressive growth trajectory. In the last financial year, smartphone exports surpassed ₹2 lakh crore, with iPhone exports alone accounting for approximately ₹1.5 lakh crore. Over the past decade, electronics production has grown five-fold and exports have grown more than six-fold, with export CAGR exceeding 20% and production CAGR over 17%.

“Within a short time, the electronics manufacturing ecosystem—comprising component manufacturers and a diverse range of players—has developed substantially. Today, there are more than 400 production units, both big and small, manufacturing a variety of components,” he stated.

Reflecting global industry trends, the Union Minister said that India’s journey in electronics manufacturing has evolved through distinct phases: beginning with finished goods, progressing to sub-assemblies, and now entering the critical phase of deep component manufacturing. The sector is steadily advancing into this third phase, which marks a significant leap in value addition, self-reliance, and ecosystem depth.

Focus on horizontal expansion and component manufacturing
Outlining the structure of the scheme, the Minister said that it is designed as a horizontal initiative with benefits spanning multiple sectors such as consumer electronics, medical devices, automobiles, power electronics, and electrical grids, thereby creating a strong multiplier effect across the economy.

The scheme focuses particularly on passive electronic components, which will be supported under the new initiative. In contrast, active components fall under the purview of the India Semiconductor Mission (ISM). 

The indicative list of passive components includes resistors, capacitors, connectors, inductors, speakers, relays, switches, oscillators, sensors, films, lenses, and many more—underscoring the depth and breadth of the scheme.

Support for capital equipment and tooling industry
Recognizing the importance of precision tools and capital goods in manufacturing, Vaishnaw announced that the scheme will also support the design and manufacturing of capital equipment used in electronics production. 

“Just like the Semiconductor Mission encouraged companies like Applied Materials and Lam Research to invest in India, this scheme will promote a similar model for the electronics component ecosystem,” he said. Chemical and gas majors, such as Linde, have already begun establishing facilities in India, and several global players are in discussions to join the ecosystem.

Tailored incentives to reflect sector needs
Highlighting the structural nuances of the components sector, the Minister noted that electronic component manufacturing typically requires higher investment and has a longer gestation period compared to finished goods. 

Accordingly, the scheme will offer three incentive structures: i)Turnover-linked incentive, ii) Capex-linked incentive, and iii) Hybrid incentive model.

The Minister emphasized that employment generation will be a mandatory requirement for all applicants, including both component manufacturers and capital equipment producers. This emphasis on job creation underlines the government’s continued commitment to inclusive growth and the development of a robust electronics manufacturing ecosystem in India.