5,532-Crore Electronics Component Projects Take Off as Tamil Nadu Leads Manufacturing Push

Electronics Component Scheme Takes Off with ₹5,532-Crore Projects; Tamil Nadu Emerges as Manufacturing Hub

In a major milestone for India’s electronics manufacturing ambitions, the government has approved seven projects worth ₹5,532 crore under the Electronics Component Manufacturing Scheme (ECMS). The projects—expected to generate ₹44,406 crore in output and over 5,000 jobs—mark a significant step toward building a self-reliant, high-value electronics ecosystem in India.

The approvals, announced by the Ministry of Electronics and Information Technology (MeitY) on October 27, signal India’s transition from assembling finished electronic products to manufacturing core components such as multi-layer printed circuit boards (PCBs), camera modules, copper laminates, and polypropylene films.

Tamil Nadu Leads India’s Electronics Component Revolution

Out of the seven approved projects, five are based in Tamil Nadu, reaffirming the state’s growing dominance as India’s premier electronics manufacturing hub. The approved firms include Kaynes Circuits India Pvt Ltd, SRF Ltd, Syrma Strategic Electronics Pvt Ltd, and Ascent Circuits Pvt Ltd.

Among them, Kaynes Circuits has emerged as a major player, bagging four projects covering PCBs, HDI boards, camera modules, and laminates. SRF Ltd will produce polypropylene film—a key raw material in capacitor manufacturing—while Syrma Strategic Electronics and Ascent Circuits will develop multi-layer PCBs used in consumer electronics, automotive, aerospace, and defence applications.

Union Minister Ashwini Vaishnaw said the first batch of approvals under ECMS represents a foundational step toward deepening India’s electronic value chain.

“The components being approved today—multi-layer PCBs, copper laminates, camera modules, and polypropylene film—form the foundation of every electronic device,” Vaishnaw said. “With these plants, India will meet 20% of domestic demand for high-density PCBs, 15% for camera modules, and 100% for copper laminates.”

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Industry Response Surpasses Expectations

The ECMS, launched to localize high-value electronics manufacturing, has received an “unprecedented” response from the industry. According to MeitY Secretary S. Krishnan, the ministry received 249 applications worth ₹1.15 lakh crore in total investment commitments—nearly double the initial target of ₹59,350 crore.

These applications correspond to an estimated production value of ₹10.34 lakh crore and employment potential exceeding 1.4 lakh jobs, significantly higher than the original estimates of ₹4.57 lakh crore and 91,600 jobs.

“Against our initial investment target of ₹59,350 crore, we have received proposals worth ₹1.15 lakh crore,” Krishnan noted. “This demonstrates strong investor confidence and a shared urgency to localize value addition in electronics.”

Reducing Import Dependence and Building Self-Reliance

India’s electronics imports—particularly for components—have remained a key pressure point in its trade balance. With the new ECMS projects, the government estimates a reduction of ₹18,000–₹20,000 crore in annual imports, boosting domestic manufacturing resilience.

Vaishnaw emphasized that the new projects are not just about import substitution but about building a globally competitive manufacturing ecosystem that integrates design, innovation, and research.

“With these plants and the design capabilities being developed in parallel, domestic value addition will reach 38–40%, which is nearly at par with China,” Vaishnaw said.

A Strategic Focus on End-to-End Manufacturing

The Electronics Component Manufacturing Scheme forms part of the government’s broader Digital India and Make in India missions, designed to strengthen the country’s electronics value chain. Future rounds of approvals under ECMS will prioritize capital equipment manufacturing, for which the application window remains open.

Vaishnaw outlined the government’s comprehensive approach to creating a fully integrated ecosystem that spans finished products, core components, raw materials, and manufacturing machinery.

“Our vision is comprehensive—we want to make the finished products, the components, the materials, and the machines that go into manufacturing all of these,” he said.

The minister added that the government is also working to indigenize raw materials and strengthen critical mineral supply chains through complementary policy measures.

Tamil Nadu’s Dominance Reinforced

Tamil Nadu’s strong infrastructure, skilled workforce, and well-established industrial base have once again placed it at the forefront of India’s electronics expansion. The state already hosts major facilities for Apple, Foxconn, Pegatron, and Tata Electronics, and is now becoming a focal point for component-level manufacturing as well.

Industry experts believe the ECMS approvals will further cement Tamil Nadu’s position as India’s leading electronics destination, driving high-value investments and employment in regions like Sriperumbudur, Hosur, and Coimbatore.

Building the Foundation for India’s Electronics Future

The ECMS is a critical link in India’s goal of achieving $300 billion in electronics manufacturing by 2026, with a strong focus on high-value, design-led, and export-driven production. By encouraging domestic fabrication of PCBs, laminates, and camera modules, the scheme is expected to reduce foreign dependency and create sustainable industrial depth.

The first wave of ECMS approvals marks not just a financial milestone but a strategic inflection point for India’s electronics story—where the focus is shifting from assembly-line production to value-chain creation.

With continued policy support, rising investor confidence, and global supply chain realignment, India is poised to emerge as a global supplier of advanced electronic components—transforming itself from an import-dependent market to a manufacturing powerhouse.

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