Government Approves 22 More Companies for Electronics Component Incentives, Eyeing Stronger Domestic Manufacturing
- ByStartupStory | January 5, 2026
In a significant step to deepen India’s electronics manufacturing ecosystem, the Ministry of Electronics and Information Technology (MeitY) has approved 22 additional projects under the Electronics Component Manufacturing Scheme (ECMS). The move is part of the government’s continued effort to expand the domestic supply chain, reduce reliance on imports and strengthen the country’s position as a global electronics production hub.
The latest approvals, announced on Friday by Union Minister Ashwini Vaishnaw, bring a fresh round of investment proposals from both global and Indian firms. Together, these projects represent a combined investment of around ₹41,863 crore and are expected to generate production worth approximately ₹2.58 lakh crore, official data shows.
These proposals are part of the ECMS, a strategic incentive programme launched by the government with a budget of ₹22,919 crore, designed to encourage companies to manufacture a wide range of electronic components including printed circuit boards (PCBs), display and camera modules, capacitors, lithium-ion cells, and various supply-chain items. By incentivising local production of such parts, policymakers aim to significantly reduce India’s dependence on imports and build resilient domestic value chains.
The newly approved companies span established industry names and emerging players. Among them are Samsung Display Noida, Foxconn’s Indian arm Yuzhan Technology India, Tata Electronics, Dixon Technologies, Hindalco Industries, Motherson Electronic Components, AT&S India, BPL, TDK India, Wipro Hydraulics and others reflecting both foreign direct investment interest and local manufacturing capacity expansion.
These projects will be spread across key industrial states including Andhra Pradesh, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu and Uttar Pradesh, thereby boosting regional manufacturing ecosystems and employment. Combined, the 22 new approvals are projected to create over 33,000 direct jobs across facilities at various stages of setup and expansion.
The approved companies will produce components that are essential not just for mobile phones and consumer electronics, but also for IT hardware, automotive electronics, telecom equipment and strategic electronic applications. Production of items such as multi-layer PCBs, connectors,
enclosures, anode material for battery technologies and camera modules underscores the breadth of manufacturing focus the government is fostering.
Speaking at the approval event, Minister Ashwini Vaishnaw urged recipients to go beyond assembly and to build strong in-house design capabilities, stressing that indigenous design competence is crucial for exports and competitiveness in global markets. He also encouraged
industry bodies to collaborate on establishing standardised design facilities in academic and research institutions to benefit smaller enterprises and startups.
This latest tranche follows earlier approvals under the ECMS and reflects sustained industry interest in the programme. With total approved applications now at 46 companies and combined committed investments exceeding ₹54,000 crore, the government’s strategy is to transition India’s electronics sector from primarily assembly-led operations to a more integrated manufacturing base that includes critical component production.
As global supply chains diversify and competition intensifies, these developments mark a pivotal push in consolidating India’s role as a major hub for electronics manufacturing and securing domestic capacity for vital components.
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