Govt’s electronics parts manufacturing drive sees 1.1L crore proposals

**Government Efforts to Boost India’s Electronics Component Ecosystem Attract Over Rs 1.1 Lakh Crore in Investment Proposals**

NEW DELHI: The Government of India’s initiatives to deepen the country’s electronics component ecosystem have received a massive boost. Domestic and international companies have submitted applications proposing investments totaling over Rs 1.1 lakh crore in new projects—almost twice the original target.

This surge in investment proposals has the potential to generate incremental production worth Rs 10.3 lakh crore when fully realized, positioning India as a formidable player in the global electronics components market.

### Focus on Indigenous Production and Global Supply Chains

Electronics and IT Minister Ashwini Vaishnaw emphasized that the plan aims to make India self-reliant in its supply chain for electronics components. This self-sufficiency is expected to cater to various manufacturing industries across the country. Furthermore, the developed supply chain will tap into global markets, reinforcing India’s role as a global supplier of indigenous (“Swadeshi”) electronics components.

### Investments from Global and Domestic Firms

The government has made it clear that there are no special provisions for investors from China, and all proposals from countries sharing a land border with India are scrutinized under established rules. Currently, such investments are managed under Press Note 3 (PN3), introduced in April 2020. Minister Vaishnaw confirmed that the process is well-established and transparent.

Several global giants, such as **Foxconn** and **Flex**, have submitted proposals under this scheme. On the domestic front, companies including **Tata**, **Dixon**, **Amber**, and **Optiemus** have also filed applications.

### Scale of Investment and Potential Production

Against the original incremental production target of Rs 4.6 lakh crore, the current 249 applications can scale production potential up to Rs 10.3 lakh crore. The benefits promised by the scheme amount to Rs 22,805 crore.

Approximately 60% of these applications have been made by Micro, Small & Medium Enterprises (MSMEs), which ensures a deep-rooted and diverse supply chain across the electronics components ecosystem.

The single largest investment proposal received under the scheme is valued at Rs 22,000 crore. The government has assured that it will vet these proposals swiftly to facilitate faster project kick-offs.

### Sector-wise Investment Details

– **Enclosures for mobile and IT hardware products & related devices:** 16 proposals worth Rs 35,813 crore
– **Flexible printed circuit boards (PCBs) and related segment:** 11 proposals worth Rs 16,542 crore
– **Electro-mechanicals:** 87 applications worth Rs 14,362 crore
– **Multi-layer PCBs:** 43 applications worth Rs 14,150 crore

Minister Vaishnaw highlighted that many categories have received proposals for the very first time under this scheme. Additionally, the government has encouraged companies to pursue original design manufacturing (ODM) within India to create local intellectual property (IP).

### Industry Response

Sunil Vachani, Chairman of Dixon Technologies, stated that the scheme will significantly increase value addition in mobile phones and IT hardware products manufactured in India. This growth in value addition is expected to make India-made electronics products globally competitive.

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The Government of India’s push to build a robust indigenous electronics component ecosystem is a significant step towards self-reliance and global leadership in the sector. With strong investor interest and a focus on innovation and local IP generation, the future looks promising for the Indian electronics manufacturing landscape.

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