New electronic component plan to double local value addition to 40%: ELCINA
- IBEF
- October 6, 2025
India’s first scheme for non-semiconductor electronic components, the Electronics Component Manufacturing Scheme (ECMS), has received record proposals that are expected to double local value addition in the production of finished goods to 35-40% over the next five years, according to industry body Electronic Industries Association of India (ELCINA). So far, investment proposals worth Rs. 1,15,000 crore (US$ 12.96 billion) have been submitted, more than twice the scheme’s target of Rs. 59,000 crore (US$ 6.65 billion). A total of 249 companies have applied, with their proposals to be screened by a dedicated committee before approval. Union Minister of Electronics & Information Technology, Mr. Ashwini Vaishnaw, noted on October 2, 2025, that the proposals collectively target manufacturing electronics components worth over Rs. 10,34,000 crore (US$ 116 billion), significantly exceeding the initial production target of Rs. 4,56,500 crore (US$ 51.44 billion).
Key segments attracting investment include enclosures for mobile phones and Information Technology (IT) hardware Rs. 35,813 crore (US$ 4.04 billion), flexible printed circuit boards Rs. 16,542 crore (US$ 1.86 billion), electro-mechanical components Rs. 14,362 crore (US$ 1.62 billion), and multi-layer printed circuit boards (PCB) Rs. 14,150 crore (US$ 1.59 billion). Elcina Secretary General, Mr. Rajoo Goel, described the scheme as a game-changer for India’s electronics manufacturing ecosystem. Elcina President, Mr. Sasi Gandhanam, and India Cellular & Electronics Association (ICEA) Chairman, Mr. Pankaj Mohindroo, emphasised that the strong participation reflects growing confidence in India as a manufacturing hub, with the scheme expected to enhance core competencies, expand sub-assemblies and component production, generate skilled employment, and strengthen global competitiveness.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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