Rs 16,000 Cr Investment in India's Electronics Scheme

New Delhi, Jul 24 (PTI) The government is learnt to have attracted investment proposals worth Rs 16,000 crore under the Electronics Component Manufacturing Scheme, according to sources.

The government had opened applications for the Rs 22,805-crore electronics component manufacturing scheme (ECMS) on May 1.

"Received proposals worth around Rs 16,000 crore under ECMS," an official source said.

An industry body also confirmed the development, based on its discussion with government officials and industry players.

According to the government source, the approval process has started and shortlisted projects are expected to be announced in September.

"The scheme has received a good response from both domestic and foreign companies," the source said.

Sources had earlier mentioned that Tata Electronics, Dixon Technologies, and Foxconn were among the big players that have shown interest in the scheme.


Recently, Dixon signed separate agreements with Chinese electronic component firms -- Chongqing Yuhai Precision Manufacturing Co Ltd and the Indian arm of Kunshan Q Technology -- for manufacturing and sales of electronic components used in electronic devices like mobile phones and laptops, among others.

The scheme aims to address the demand-supply deficit in the electronic component segment.

Electronic Industries Association of India (Elcina), the country's oldest industry body of the Indian electronics sector, estimates that the demand-supply deficit for inputs in the electronics segment will increase to USD 248 billion (about Rs 21 lakh crore) by 2030 to cater to projected USD 500 billion electronics production, and it would be met largely by imports in absence of any measure from the government.

The major portion of the scheme, Rs 21,093 crore, is earmarked for sub-assemblies like camera module, multi-layered printed circuit board (PCB), flexible PCB, and passive components that are fixed on the PCB by machines. A total of Rs 1,712 crore has been earmarked for making parts used in sub-assemblies and capital goods used in electronics manufacturing.

The scheme classifies display module and camera module sub-assembly in category A, while category B products include bare components like non-surface mount devices (non-SMD), multi-layered printed circuit board, lithium-ion cells for digital applications, enclosures for mobile, IT hardware products and related devices.

Category C includes components like flexible PCB, SMD passive components.

Besides, components used in making items listed under A, B and C categories, as well as capital goods used in electronics manufacturing, have been clubbed under the D category.

The government has opened the application window for A, B and C categories initially for three months starting May 1, and for two years for D category items.