The Ministry of Electronics and Information Technology (MeitY) has given the green light to 29 new applications under the Electronics Component Manufacturing Scheme (ECMS), with anticipated investments totaling ₹7,104 crore. These initiatives are projected to create 14,246 direct jobs and establish a production pipeline valued at ₹84,515 crore.
This latest approval brings the total number of applications cleared under the ECMS to 75, with the overall projected investment now reaching ₹61,671 crore, leading to an estimated 65,040 direct employment opportunities.
According to MeitY, the newly approved projects encompass 16 product categories, including:
- Display modules
- Capacitors
- Connectors
- Resistors
- Flexible PCBs
- Lithium-ion cells
These components are essential for various sectors such as mobile manufacturing, telecommunications, consumer electronics, automotive, and IT hardware.
Notably, some of the approved projects mark significant firsts for India, including the production of surface mount device passive components utilizing tantalum capacitors, flexible printed circuit boards, and rare earth permanent magnets.
Companies that received approvals in this round include:
- Dixon Display Technologies
- VVDN Technologies
- Molex India
- Vishay Components India
- TDK India
- Syrma Strategic Electronics
The government is also focusing on strengthening supply chains for electronic components, with projects aimed at producing copper clad laminates, metallised films for capacitors, and rare earth magnets. Lohum Cleantech will establish a facility for rare earth magnets under the ECMS.
In addition, approvals were granted to six firms, including Titan Engineering and Automation, ASM Technologies, and Bharat FIH, for the manufacture of capital equipment.
During a press briefing, IT Minister Ashwini Vaishnaw emphasized the importance of developing in-house design capabilities and a robust domestic supply chain. He also stressed the need for improved quality standards and workforce training.
MeitY Secretary S. Krishnan noted the government's swift action on approvals and expressed hope that companies would match this pace in their execution.
The India Cellular and Electronics Association welcomed the approvals, highlighting that the increased ECMS budget of ₹40,000 crore, alongside the success of the Production Linked Incentive (PLI) scheme, could significantly boost the electronics manufacturing sector.
The enhanced budget was announced by Finance Minister Nirmala Sitharaman in the Union Budget 2026, representing a 75% increase from the previous allocation of ₹22,919 crore.
Launched in April 2025, the ECMS aims to develop a $500 billion electronics component manufacturing ecosystem in India by FY32, offering various incentives linked to turnover, capital expenditure, and employment.
In October 2025, the government reported receiving investment proposals totaling ₹1.15 lakh crore under the scheme, nearly doubling its initial target of ₹59,350 crore. The IT ministry also indicated production estimates of ₹10.34 lakh crore against a target of ₹4.5 lakh crore.
In a separate update, the Union government informed Parliament that there have been no reported concerns regarding excessive water consumption by data centres. Minister of State for Jal Shakti, Raj Bhushan Choudhary, stated that India's data centre capacity has expanded from 375 MW in 2020 to over 1,500 MW by 2025.
The government highlighted that newer technologies, such as direct-to-chip liquid cooling and immersion cooling, are being implemented to minimize water and energy usage. Data centres are regulated under groundwater extraction rules, with the latest guidelines issued in March 2023.
This initiative to enhance data centre infrastructure is part of the government's broader strategy to strengthen digital infrastructure and improve the delivery of digital services.
