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Recipients include major global players like Samsung, Tata Electronics, and Foxconn
On Friday, the Indian government announced the approval of projects worth 418.63 billion rupees ($4.64 billion) as part of the Electronics Component Manufacturing Scheme (ECMS), an initiative aimed at expanding domestic manufacturing and reducing reliance on imports.
Companies set to benefit from subsidies include major tech players like Samsung Electronics, Tata Electronics, and Foxconn, as well as smaller domestic companies.
The 22 approved proposals cover the domestic production of components for industries including mobile manufacturing, telecoms, consumer electronics, strategic electronics, automotive, and IT hardware.
The government says the projects will produce $28.62 billion-worth of goods and employ around 34,000 people.
The ECMS, a production-linked incentive scheme, was approved in March 20205 as part of the Indian government’ drive to boost domestic production capacity across key industries. According to the government website, the scheme ‘aims to develop a robust component ecosystem by attracting large investments (global/domestic) in electronics component manufacturing ecosystem, by developing capacity and capabilities, and integrating Indian companies with Global Value Chains (GVCs)’.
These new approvals follow seven projects, worth roughly $625 million, that were already given the green light last year.
India has been seeking to boost its domestic manufacturing capabilities and reduce its reliance on imports for over a decade, most notably through the ‘Make in India’ initiative launched in 2014. In recent years, against the backdrop of growing geopolitical tensions worldwide, such efforts have accelerated alongside the growing demand for electronic goods.
India’s electronics component manufacturing industry produced goods worth $125 billion in the year to March 2025 and continues to see steady growth year-on-year. However, it remains heavily dependent on component imports from China. With the government targeting major growth, with total production targeted to hit $500 billion by 2031, this reliance is viewed as a major liability.
In July 2025, India’s IT Minister Ashwini Vaishnaw said the country’s electronics manufacturing capabilities is on course to achieve a value addition of 38% within the next five years, a pace comparable to China’s. At the same time, he emphasised the county’s continued rapid development of domestic industry.
“India must build capabilities in every machine, every component to withstand geopolitical uncertainties. We must go into every part of it and start manufacturing them,” he said, as reported by the Times of India.
At the heart of the domestic component production drive is developing the country’s local semiconductor industry, which is also crucially reliant on China and Taiwan. According to Vaishnaw, four chip companies are already preparing to begin commercial production in India this year.
“The plants which started pilot production last year – they are the ones that will get into commercial production earlier, which are Kaynes [Semicon] and CG Semi. Micron has also started pilot production very recently. They will also go next month. Tata [Electronics]’ plant in Assam will start pilot production by the middle of the year, and by the end of the year they will start commercial production,” said Vaishnaw.
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