VOL XXVII, ISSUE 02

31 January 2026

Extension of timelines for implementing the Order covering product categories listed in the CRO schedule under S.O. 1929(E)

The implementation date for compulsory BIS registration of “Television Sets” (Sl. No. 64 of the Electronics and IT Goods CRO, 2021) for compliance with IS 18112:2022 has been extended from 26 January 2026 to 26 July 2026.

Ministry of Electronics and Information Technology | Notification No. CG-DL-E-22012026-269529 | 22 January 2026

Standard for telecommunication equipment (generic requirements IoT Gateway)

The notification brings three updated TEC technical standards into force for telecom equipment – covering splice closures for optical fibre cables, lightning and surge protection of telecom sites, and SMPS-based power plants – under the Telecommunication Act, 2023 and related rules, effective from the Gazette publication date.

Ministry of Communications, Department of Telecommunications | Notification No. CG-DL-E-24012026-269578 | 23 January 2026

Telecommunication Engineering Centre notifies revised telecom equipment standards

The Ministry of Communications announced revised standards for telecommunication equipment. This update aligns with ongoing efforts to modernize India's telecom certification framework under the MTCTE regime, ensuring enhanced compliance, interoperability, and safety for devices like IoT gateways and active DAS systems. 

Ministry of Communications, Department of Telecommunications | Notification No. CG-DL-E-24012026-269577 | 23 January 2026

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         INDUSTRY  SCAN                                                                             

General

Not fabs, but fundamentals: Why India-Germany’s chip pact could reshape New Delhi’s semiconductor ambitions

Business Today | 16 January 2026

India and Germany have elevated their relationship from a transactional buyer – seller model to a strategic technology partnership by signing a Joint Declaration of Intent on the India-Germany Semiconductor Ecosystem Partnership during Chancellor Friedrich Merz’s visit. The framework aims to combine Germany’s industrial strengths with India’s ambition to build a domestic semiconductor base. The partnership recognises that building a chip industry goes beyond fabs, focusing on equipment, chemicals and precision engineering where Germany holds key expertise.

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India Inc shows interest for Rs 7,280-crore rare earth magnet scheme

Financial Express | 16 January 2026

India’s largest industrial groups, including Adani Enterprises, Reliance Industries, JSW Group, Kalyani Group and Maruti Suzuki India, have expressed early interest in the government’s ₹7,280-crore incentive scheme to build domestic capacity for rare earth permanent magnets. Company representatives attended a recent stakeholders’ meeting to understand the scheme, which aims to support the full manufacturing chain from rare earth processing to finished magnets. However, firms are waiting for the final request for proposal before committing investments, after assessing incentives against their business needs.

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India holds ground in US market as electronics and consumer goods blunt tariff impact

Moneycontrol | 16 January 2026

Despite higher US tariffs, India has largely maintained and in some cases expanded its presence in the American market, supported by strong electronics and consumer goods exports. A Moneycontrol analysis shows nearly 60 percent of Indian products imported by the US saw higher volumes and increased import share after tariffs were imposed. The impact has been uneven across categories, with electronics showing exceptional resilience. Laptop exports surged sharply, reflecting India’s ability to quickly scale manufacturing and benefit from global supply-chain shifts away from competing countries.

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Kaynes Semicon Signs Fiscal Support Pact Under India Semiconductor Mission

CXO Today | 17 January 2026

Kaynes Semicon Private has executed its Fiscal Support Agreement and related transaction documents with the India Semiconductor Mission, Government of India. This marks a key procedural milestone enabling eligible fiscal support under the national semiconductor policy framework. The development reflects the government’s continued commitment to building domestic semiconductor manufacturing capabilities and highlights Kaynes Semicon’s focus on strong governance, transparency, compliance, and a leadership role aligned with India’s long term strategic objectives.

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Electronics firms seek duty cuts to boost local manufacturing

Financial Express | 19 January 2026

Electronics manufacturers have urged the government to rationalise customs duties in the Union Budget, arguing that changes to tariffs on components and capital equipment are essential to sustain India’s mobile phone and electronics manufacturing growth. In proposals submitted by industry body ICEA, the sector has highlighted cost disadvantages faced by domestic manufacturers due to current duty structures. Addressing these issues, it says, would improve global competitiveness and help India attract and retain supply chains as multinational companies diversify production beyond China.

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Davos 2026: India is emerging as a manufacturing hub for electronics, Qualcomm CEO says

The Economic Times | 22 January 2026

India is emerging as a major global hub for electronics manufacturing as companies diversify production away from China to countries like India and Vietnam. Qualcomm CEO Cristiano Amon, speaking at the World Economic Forum 2026 in Davos, said this shift is driven by economic efficiency and the need to reduce political and supply-chain risks. The pandemic reinforced the importance of diversified manufacturing bases. India’s expanding electronics sector presents strong potential for investment and job creation, strengthening its role in global supply chains.

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1st Commercial Semiconductor Chip Production Will Begin This Year: Minister

NDTV | 24 January 2026

Union Electronics and Information Technology Minister Ashwini Vaishnaw said India is on track to begin commercial semiconductor chip production in 2026, in line with the timeline set under the India Semiconductor Mission launched in January 2022. The government had targeted commercial output within five years of the mission’s rollout. According to the minister, four semiconductor plants are expected to begin operations in 2026, while pilot production has already started at three facilities in 2025, marking steady progress toward building domestic chip manufacturing capacity.

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Bharat Electronics net rises 21% to ₹1,580 crore in Q3FY26

The Economic Times - Manufacturing | 29 January 2026

State-owned defence major Bharat Electronics Ltd (BEL) posted a strong performance in the December quarter, supported by steady defence demand and a robust order book. Consolidated net profit rose 21 per cent year-on-year to ₹81,580 crore in Q3 FY26, while revenue from operations grew 24 per cent to ₹27,154 crore. The company also delivered sequential growth, with profits improving from the September quarter and revenues rising from ₹5,946 crore, reflecting consistent execution across key defence programmes.

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Information Technology

AI adoption outpaces training, 71% professionals expect role shifts: Report

Business Standard | 18 January 2026

Artificial intelligence adoption in workplaces is advancing faster than corporate training efforts, creating a growing skills gap, according to a Genius HRTech and Digipoll report. About 71 per cent of professionals expect their roles to change in the coming years as AI tools and workflows become mainstream. However, 61 per cent said their organisations have not provided adequate guidance on effective AI use, while only 37 per cent reported receiving proper training. The findings are based on a November 2025 survey of 1,704 professionals.

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India’s big IT ends recruitment freeze, but only for niche skills

The Economic Times | 18 January 2026

India’s top five IT companies added a net 2,505 employees in calendar year 2025, reversing job cuts made the previous year and signalling a shift towards selective, skill-based hiring. The firms—TCS, Infosys, HCLTech, Wipro and Tech Mahindra—had reduced headcount by about 2,500 in 2024 after trimming excess workforce built during the pandemic. Despite employing over 1.5 million people, the $283 billion IT sector has not returned to earlier hiring levels amid AI-driven disruption and the rise of global capability centres.

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Consumer Electronics

From factory floors to AI labs: Samsung’s JB Park on creating ecosystem of industrial design in India

The Indian Express | 19 January 2026

Samsung’s push to blend design with software, AI, and automation reflects India’s growing importance as a global technology and innovation hub. Like other major tech firms, Samsung is increasing its focus on India due to the country’s large consumer market, rising exports, and strong foreign investment inflows. As companies diversify supply chains away from China, India has emerged as the world’s second-largest mobile phone manufacturer. However, gaps remain in the end-to-end ecosystem, which Samsung aims to address through greater local design.

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Surging memory chip prices dim outlook for consumer electronics makers

The Economic Times - CIO | 22 January 2026

Global demand for smartphones, personal computers and gaming consoles is expected to decline this year as rising memory chip prices force companies to increase retail prices. Rapid investment in artificial intelligence infrastructure by US tech giants has absorbed a large share of global memory supply, driving manufacturers to prioritise higher-margin data centres over consumer electronics. Major chipmakers Samsung, SK Hynix and Micron are struggling to meet demand amid surging prices. As a result, research firms now forecast a contraction in smartphone shipments, reversing earlier growth expectations.

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Telecom

India, Germany ink pact to deepen collaboration in telecom & ICT domains

The Economic Times - Telecom | 16 January 2026

India and Germany have signed a Joint Declaration of Intent to strengthen cooperation in telecom and information and communication technology, according to the Ministry of Communications. The agreement creates a framework for regular consultations, annual high-level meetings, and working groups involving government, industry, academia, and research institutions. It focuses on sharing best practices, collaboration in emerging technologies, and cooperation in policy, manufacturing, and ease of doing business. The pact was signed during German Chancellor Friedrich Merz’s official visit to India.

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India is now the 2nd largest 5G user with 400 million+ users globally: Jyotiraditya Scindia

The Economic Times | 16 January 2026

India has emerged as the world’s second-largest 5G market after China, with over 400 million subscribers, according to Union Communications Minister Jyotiraditya Scindia. Launched in 2022, 5G services now cover 99.6% of districts and reach about 85% of the population. Telecom operators have installed 4.69 lakh 5G base transceiver stations, marking one of the fastest rollouts globally. Around 250 million users have adopted 5G so far, while rural telecom connections have grown sharply, outpacing urban growth.

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Centre delicenses lower 6 GHz band for faster Wi-Fi at homes

The Economic Times | 22 January 2026

The government has delicensed the lower portion of the 6 GHz spectrum band, enabling faster home Wi-Fi speeds and supporting next-generation technologies such as Wi-Fi 7 in India. The move, welcomed by the technology and electronics industry, follows a notification by the Ministry of Communications exempting low-power indoor and very-low-power outdoor wireless access systems from licensing. The exemption covers devices operating in the 5925-6425 MHz band on a shared, non-interference basis, subject to compliance with prescribed technical limits on power, bandwidth and emissions.

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Economic Survey highlights telecom PLI's big success

The Economic Times | 29 January 2026

India’s telecom sector has recorded strong gains under the PLI scheme, with exports growing at a 1.5% AAGR between FY21 and FY25, while imports declined 18.5%, according to the Economic Survey 2025-26. Launched in 2021, the scheme has drawn over ₹4,700 crore in investments, with telecom exports surging 51.2% in FY25 alone. Telecom now contributes 1.2% to GVA. Rising connectivity, falling data prices, rapid network expansion and public programmes like BharatNet have driven digital adoption, especially in rural areas.

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EV’s & Auto Electronics

Ola Electric expands 4680 Bharat Cell platform beyond EVs, enters residential energy storage and B2B supply

Fortune India | 16 January 2026

Ola Electric has announced a major expansion of its in-house 4680 Bharat Cell platform, positioning it beyond electric mobility to serve residential energy storage and B2B applications. Unveiled at the ‘Prarambh 2026’ event, the move marks Ola’s entry into India’s residential BESS market and enables direct sales of cells and 1.5 kWh battery packs to businesses and startups. The strategy aims to monetise its cell manufacturing across sectors such as EVs, drones, robotics and medical devices.

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BYD may begin electric vehicle assembly in India: Here’s why

The Times of India | 28 January 2026

Chinese electric vehicle maker BYD is exploring local assembly options in India as strong demand for its cars runs up against import limits and supply constraints. According to reports, the company is evaluating semi-knocked-down (SKD) assembly routes after India rejected its proposal for a full manufacturing plant due to concerns over Chinese investments. SKD assembly requires lower investment and faces fewer regulatory hurdles. With bookings running high and sales up 88 per cent last year, local assembly could ease tariffs, improve pricing flexibility, and support higher volumes.

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Economic Survey 2026: Auto sector gets over ₹35,600 crore PLI investment, 49,000 jobs created

CNBC TV18 | 29 January 2026

India has rolled out multiple schemes to strengthen its electric and advanced automotive ecosystem. The PLI Scheme for Automobiles and Auto Components, launched in 2021, has drawn ₹35,657 crore in investment and generated nearly 49,000 jobs, while the ACC battery PLI aims to localise battery manufacturing with 40 GWh capacity awarded so far. Complementary initiatives such as PM E-DRIVE, PM e-Bus Sewa PSM and the SMEC scheme support EV demand, public transport electrification, charging infrastructure, and phased domestic manufacturing.

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Defence & Solar

Reliance commissions solar cells, scales batteries; eyes green fuel exports to Japan, Korea, Europe

Moneycontrol | 16 January 2026

Reliance Industries’ new energy business is transitioning from construction to commissioning, with key milestones disclosed in its Q3 FY26 presentation. The company has commissioned its heterojunction solar cell manufacturing in Jamnagar and begun ramp-up, while solar module operations have achieved 94-95 percent yields for the first time. Reliance is building an integrated solar value chain from polysilicon to modules with 10 GW capacity, scalable to 20 GW, to mitigate supply-chain and geopolitical risks.

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Defence Procurement Board clears proposal for 114 Rafale jets

The Times of India | 17 January 2026

India has moved closer to acquiring 114 Rafale fighter jets after the Defence Procurement Board cleared the proposal, marking the first formal step in what could become the country’s largest-ever defence deal, valued at about ₹3.25 lakh crore. The proposal will now go to the Defence Acquisition Council and then the Cabinet Committee on Security. The deal is expected to proceed via an inter-governmental agreement with France.

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Indian defence company to invest ₹500 cr in chip plant

The Economic Times | 19 January 2026

Paras Defence and Space Technologies Ltd is investing ₹500 crore to set up a new semiconductor production facility aimed at serving both domestic and export markets, with production expected to begin by the end of next year. The facility will focus on chiplet integration and advanced system-in-package technologies, areas where India currently depends entirely on imports. The company sees strong domestic demand driven by defence indigenisation, particularly for thermal imaging systems, with an estimated annual requirement of ₹2,500 crore for sensors and chipsets.

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India, UAE to elevate ties with strategic defence partnership

The Times of India | 20 January 2026

India and the UAE further deepened their rapidly expanding partnership with the signing of a letter of intent for a strategic defence partnership during President Mohamed bin Zayed Al Nahyan’s brief visit to India. The visit yielded multiple outcomes, including four additional agreements covering space cooperation, a long-term LNG supply deal between HPCL and ADNOC Gas, and development of the Dholera Special Investment Region. The two sides also announced plans to double bilateral trade to $200 billion by 2032 and expand cooperation in supercomputing and civil nuclear energy.

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Boost for defence exports as Rajnath flags off 1st batch of Pinaka guided rockets for Armenia

The Times of India | 20 January 2026

India marked a major milestone in defence exports as defence minister Rajnath Singh flagged off the first batch of guided Pinaka rocket systems to Armenia from a Nagpur facility. The export highlights India’s growing role as a supplier of advanced weapon systems, with Pinaka variants capable of striking targets up to 75 km and trial versions reaching 120 km. Singh said defence exports have surged to ₹24,000 crore from under ₹1,000 crore a decade ago, driven by private sector participation and rising domestic production.

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MSME

MSME loans of over Rs 52,300 cr sanctioned by PSBs under digital credit model

The Economic Times | 19 January 2026

India’s micro, small, and medium enterprises (MSMEs) are playing an increasingly important role in the economy, with their contribution to GDP rising steadily. The sector has also recorded a sharp surge in exports, reportedly tripling over recent years, reflecting improved competitiveness and stronger global integration. At the same time, non-performing asset (NPA) levels linked to MSMEs have declined, indicating healthier balance sheets and better credit discipline. Together, these trends highlight the sector’s growing resilience and importance to economic growth.

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Centre weighs scaling up MSME Champions Scheme outlay ninefold to ₹10,000 crore

Mint | 20 January 2026

The Centre is considering a major expansion of the MSME Champions Scheme, with the budgetary outlay likely to rise to around ₹10,000 crore over the next five years. This marks a sharp increase from the ₹1,125 crore allocated during FY22-FY26 and reflects industry demands for stronger financial support. The enhanced funding aims to promote cleaner manufacturing practices, boost exports, and improve the global competitiveness of small businesses. The proposal has reportedly reached the Expenditure Finance Committee stage for approval.

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MSMEs’ contribution to GDP rises, exports triple, and NPA levels drop

The Times of India | 20 January 2026

India’s micro, small, and medium enterprises (MSMEs) are playing an increasingly important role in the economy, with their contribution to GDP rising steadily. The sector has also recorded a sharp surge in exports, reportedly tripling over recent years, reflecting improved competitiveness and stronger global integration. At the same time, non-performing asset (NPA) levels linked to MSMEs have declined, indicating healthier balance sheets and better credit discipline. Together, these trends highlight the sector’s growing resilience and importance to economic growth.

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PLI and improving demand to favour electronics MSMEs

Business Standard | 28 January 2026

India’s electronics MSMEs are expected to see double-digit growth, supported by the PLI-led manufacturing push and improving domestic demand. Electronics consumption is projected to rise 11-13% year-on-year to ₹17-18 trillion this financial year, driven by government demand-boosting measures, GST rationalisation and income tax revisions. Mobile phones, consumer and industrial electronics together account for over half of total sales. Next year, consumption growth may strengthen further, while electronics production is expected to rise 10-20% year-on-year under the PLI scheme.

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Economic Survey 2025-26: Highlights & Analysis

The Economic Survey 2025-26, tabled by the Hon’ble Finance Minister Smt. Nirmala Sitharaman in Parliament on January 29, 2026, provides a practical framework for navigating a challenging global environment. With ongoing geopolitical shifts, trade frictions and supply-chain disruptions, the Survey argues for timely decision-making, measured risk-taking and the ability to adjust policies as conditions change, rather than delaying action through over-analysis.

Despite global uncertainties – including the imposition of US tariffs in April 2025 – India’s economic resilience after the Covid-19 pandemic remains visible. Growth is projected at over 7% in FY26, supported by continued reforms, government-led momentum and strong macroeconomic buffers. Together, these factors position India as a relatively stable economy at a time of global volatility.

The Survey also acknowledges that India’s development path cannot follow standard global models. With a population of 145 crore operating within a democratic framework, India must build its own approach to growth. This requires a focus on supply stability, diversified trade routes, adequate liquidity and strong buffers to manage external shocks while sustaining long-term competitiveness.

Within this broader context, the electronics sector assumes added importance. As one of the fastest-growing segments of manufacturing and exports, electronics plays a key role in strengthening supply chains, expanding value addition and building technological capability. The Survey’s focus on domestic manufacturing, deeper value chains and strategic autonomy has direct implications for the future of the electronics industry.

The following analysis outlines the key takeaways from the Economic Survey 2025-26 from the perspective of the electronics ecosystem and its contribution to India’s long-term growth under the vision of Viksit Bharat 2047.

1. Electronics Emerges as a Core Growth Engine

The Economic Survey 2025-26 positions electronics as a cornerstone of India’s industrial transformation and global trade strategy. The sector has undergone a structural shift – from a largely domestic-focused industry to one deeply integrated with global value chains. Between FY22 and FY25, electronics rose from the 7th-largest export category to the 3rd-largest and fastest-growing, underscoring its strategic importance to India’s manufacturing-led growth model.

This recognition strengthens the industry’s long-standing position that electronics must be treated as a strategic sector with long-term policy continuity. Stable multi-year frameworks are critical for sustaining investments in capital-intensive manufacturing and global supply chain integration.

 2. Strong Production and Export Momentum

The growth momentum in electronics manufacturing has remained robust:

• FY25 electronics production: Rs 11.3 lakh crore (19% YoY growth)

• FY25 electronics exports: Rs 3.3 lakh crore (37.5% YoY growth)

• FY25 imports: Rs 8.4 lakh crore (15% YoY growth)

In the first half of FY26, electronics exports reached USD 22.2 billion (Rs 2.04 lakh crore), placing the sector on track to become India’s second-largest exported item, after engineering goods.

The export surge confirms global confidence in India’s manufacturing capabilities. However, the parallel rise in imports highlights the need to accelerate localisation of components and sub-assemblies to improve domestic value addition and trade balance.

3. Mobile Manufacturing: The Central Growth Driver

Mobile phones continue to be the backbone of electronics manufacturing growth. Production value increased nearly 30-fold, from Rs 18,000 crore in FY15 to Rs 5.45 lakh crore in FY25. India has transitioned from being a net importer to the world’s second-largest mobile phone manufacturer. Manufacturing infrastructure expanded from 2 units in 2014 to over 300 units today. This scale-up has significantly altered India’s position in global electronics manufacturing.

Mobile manufacturing has successfully created scale, employment and export momentum. The industry’s next priority is to deepen the ecosystem beyond assembly by expanding component manufacturing, tooling, precision engineering and product-level innovation.

At present, mobile manufacturing is led by large scale assembly with significant dependence on imported components with limited domestic value addition. Bridging this gap is a key challenge and will require sustained investment across the component ecosystem, materials and technology transfer. Initiatives such as the Electronics Component Manufacturing Scheme (ECMS) and the India Semiconductor Mission (ISM) are targeted to effectively overcome this weakness and have received a very encouraging response from industry. ELCINA and industry at large are confident that overall value addition will rise significantly from the present 15-20% to 35-40% by 2030.

4. Production-Linked Incentive (PLI) Scheme: Overall Impact

Since its launch in 2020, the PLI framework has delivered measurable outcomes across sectors:

• Actual investments: Over Rs 2 lakh crore

• Incremental production and sales: Rs 18.7 lakh crore

• Exports generated: Rs 8.2 lakh crore

• Employment created: Over 12.6 lakh jobs (direct and indirect)

• Incentives disbursed: Rs 23,946 crore

• Applications approved: 806 across 14 sectors

The Survey identifies electronics as the flagship success story of the PLI programme.

PLI has demonstrated that outcome-linked incentives can effectively crowd in private investment. The success reinforces the electronics industry’s view that predictable, performance-based policy instruments are essential for building globally competitive manufacturing ecosystems.

5. PLI for Large-Scale Electronics Manufacturing

Launched in April 2020, this scheme has been central to India’s mobile manufacturing expansion. As of September 2025:

• Investment: Rs 13,759 crore

• Cumulative production: Rs 9.34 lakh crore

• Exports: Rs 5.12 lakh crore

The scheme successfully encouraged major global smartphone manufacturers to relocate production to India, strengthening the country’s role in global supply chains.

The PLI scheme delivered high returns relative to incentive outlay. With the original tenure ending in March 2026, industry emphasises the importance of continuity to avoid disruption of established supply chains and long-term export commitments.

6. PLI 2.0 for IT Hardware

The IT Hardware PLI, launched in May 2023, has begun contributing to diversification beyond mobiles.

As of September 2025:

• Cumulative production: Rs 14,462.7 crore

• Investment realised: Rs 892.47 crore

The scheme supports domestic manufacturing of laptops, servers, tablets and related hardware.

While early progress is encouraging, this segment is still at an early stage. Achieving scale comparable to mobile manufacturing will require stronger demand creation, faster approvals and alignment with government procurement. At the same time, greater industry participation and stronger market linkage are essential, as wider acceptance of products manufactured in India continues to evolve. Encouraging and persuading global companies and multinational manufacturers to expand production in India will require sustained policy support and targeted incentives to accelerate scale and market integration.

7. Tariff Rationalisation for Global Value Chain Integration

The Economic Survey notes that ongoing geopolitical realignments and global supply-chain restructuring are opening opportunities for labour-abundant economies to position themselves as competitive manufacturing and assembly hubs within global value chains. However, higher import tariffs on intermediates and capital goods compared to finished products can create inverted duty structures, raising input costs and discouraging domestic manufacturing. Recent Union Budgets have initiated corrections in several core sectors to move toward greater tariff neutrality.

For electronics industry, input tariff neutrality is critical to cost competitiveness and scale. Continued rationalisation of duties on intermediates and capital goods—particularly in high-growth segments—can lower production costs, encourage component localisation, and strengthen India’s position as a preferred global manufacturing base

8. Government-Led Electronics Cluster Development

The EMC and EMC 2.0 schemes focus on creating plug-and-play infrastructure to support electronics manufacturing. In electronics manufacturing clusters such as Noida and Sriperumbudur, public policy has played an active role beyond regulation. Government interventions have supported cluster formation by facilitating coordination among manufacturers, enabling early-stage investments, guiding procurement and export linkages, and helping small and mid-sized firms meet global quality and compliance standards.

For the electronics sector, cluster-based development has been critical in reducing entry barriers and accelerating scale. Policy-led coordination helps align anchor units and suppliers, lowers risk for new investments, and enables MSMEs to integrate into global value chains. Strengthening such cluster ecosystems remains essential for building depth, competitiveness and long-term manufacturing resilience.

9. Strengthening the Component Ecosystem: SPECS

To deepen localisation, the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) offers a 25% incentive on capital expenditure. SPECS plays a critical role in addressing component-level gaps within the electronics value chain.

Progress so far:

• 58 applications approved

• Proposed investment: Rs 22,081 crore

SPECS addresses a critical gap in India’s electronics value chain. Further impact can be achieved through faster disbursal timelines, broader product coverage and stronger integration with anchor manufacturers.

10. Electronics Component Manufacturing Scheme (ECMS)

Notified in April 2025 with a budgetary outlay of ₹22,919 crore, ECMS aims to strengthen India’s electronics component manufacturing ecosystem and improve integration with global value chains. The scheme provides a flexible incentive framework, including turnover-linked incentives, capital expenditure (capex) incentives, and a hybrid model combining both, across identified target segment products.

Beyond the Economic Survey, ELCINA notes that ECMS, conceived by its leadership, is a very important scheme and has received strong response from the industry. There is clear investment interest, and the scheme should continue to receive policy support. Extending it further will help ensure that these investments lead to real manufacturing outcomes. Along with the India Semiconductor Mission (ISM), ECMS can help India move much ahead of its current 15-20% value addition and a strategic share in the global electronics value chain.

The ECMS scheme supports manufacturing of key non-semiconductor components such as PCBs, capacitors, electromechanical components, camera modules, lithium cells among others. So far, Rs 54,567 crore of investment has been approved across 46 projects, with expected production of Rs 2.58 lakh crore and creation of around 51,000 jobs.

11. Semiconductor Dependency: A Key Structural Challenge

Despite strong gains in electronics assembly and exports, the Economic Survey flags a persistent dependence on imported semiconductors.

Key concerns:

• Semiconductor imports reached USD 24.7 billion in FY25

• Chips account for 67% of total electronics imports

Semiconductors remain the most expensive and technologically complex component in electronics manufacturing. This dependency poses risks to long-term resilience and value addition.

This remains the single largest constraint on increasing domestic value addition. Without local semiconductor availability, manufacturers face cost volatility, supply risks and limited ability to move up the value chain.

12. Semiconductor Supply Chains: Strategic Priority

The Economic Survey highlights that globally, countries are prioritising strategic sectors such as:

• Semiconductors

• Artificial intelligence

• Electric vehicles

• Renewable energy

• Critical minerals

The COVID-19 pandemic exposed severe vulnerabilities when chip shortages affected over 169 industries worldwide, leading to production disruptions and cost escalation. The absence of a stable semiconductor supply is identified as a systemic risk to economic activity.

For electronics manufacturers, reliable chip supply is now a competitiveness issue rather than a cost consideration alone. Domestic semiconductor capacity will be critical for production continuity, export reliability and investor confidence.

13. India Semiconductor Mission (ISM): Building Domestic Capability

Launched in 2021, the India Semiconductor Mission (ISM) aims to establish domestic capabilities across design, fabrication and packaging. Under the Rs 76,000 crore semiconductor programme, key approvals include:

• Micron’s ATMP facility

• Tata Electronics’ semiconductor fab

• One compound semiconductor fab

• Multiple advanced packaging units

In addition:

• 24 projects approved for financial support

• 100 companies supported for chip design infrastructure, including start-ups and MSMEs

ISM is welcome as a decisive step toward technological sovereignty. Timely execution, skilled workforce development and ecosystem readiness will determine whether these projects translate into sustainable manufacturing capability.

14. Scale of Semiconductor Investments

As of August 2025:

• 10 semiconductor manufacturing and packaging projects approved

• Cumulative investment: Approximately Rs 1.6 lakh crore

• Projects spread across six states

As execution accelerates, these investments are expected to strengthen domestic capabilities and improve supply-chain resilience, the Economic Survey notes.

The scale of investment reflects strong global and domestic confidence. Industry stresses the importance of coordinated centre-state implementation, infrastructure readiness and long-term policy assurance to ensure successful commissioning.

15. Policy Continuity and the Road Ahead

With the original six-year mobile PLI scheme approaching its March 2026 deadline, the government has significantly increased budgetary support – PLI allocation nearly doubled to about Rs 8,900 crore in FY26, compared to FY24. The Survey indicates that the government is evaluating a successor framework or PLI 2.0, aimed at protecting gains already achieved and supporting deeper manufacturing and value addition.

The increased allocation signals policy commitment. Industry strongly supports a next-phase framework focused on higher value addition, component depth, design capabilities and export competitiveness rather than volume-led assembly alone.

16. From “Swadeshi” to Strategic Resilience

The Economic Survey concludes that India’s electronics sector is evolving beyond import substitution toward strategic resilience. By combining scale manufacturing, export integration and early-stage semiconductor capacity building, India is positioning itself as an indispensable hub in global electronics value chains, with long-term implications for technology sovereignty and industrial competitiveness.

For the electronics industry, this shift marks a move toward long-term competitiveness. With sustained policy support and ecosystem development, India can position itself as a trusted global hub for electronics manufacturing and innovation.

ELCINA EVENTS , ACTIVITIES & SERVICES 

Source India is ELCINA’s premier annual event connecting India’s electronics supply chain, driving local sourcing, investments, and innovation across consumer electronics, automotive, EVs, defence, medical devices, embedded systems, and smart technologies.

Theme 2026 – Vision 2030: Powering India’s Rise as the World’s Electronics Engine

Join 5,000+ decision-makers, 150+ exhibitors, and industry leaders at the 15th edition on 10–11 February 2026 at Chennai Trade Centre. Showcase cutting-edge components, build strategic partnerships, and tap into India’s fast-growing electronics manufacturing ecosystem – aligned with ELCINA’s Vision 2030 to position India as the world’s electronics engine.

Experience live demos, expert conferences, and high-impact networking at Source India 2026. Secure your booth to boost visibility, forge partnerships, and be part of India’s electronics revolution.

Click here for details of Source India 2026

ELCINA Publications

https://elcina.com/roadmap-for-developing-pcb-eco-system-in-india	Roadmap For Developing PCB Eco-System in India Key Findings Indian PCB market and industry size in terms of domestic production, exports, and imports Growth drivers and challenges (needs & gaps) in the Indian PCB industry Growth potential of PCB manufacturing in India and identify enablers for creating & strengthening the domestic value chain Key inputs required viz. investments, technology, and infra eco-system Details of key PCB value chain players – global and domestic, who can be invited to invest to establish a strong PCB industry
https://elcina.com/ems-task-force-report-on-market-industry-analysis-of-ems-sector-in-india	EMS Task Force Report Key Findings Currently EMS Industry (Contract Manufacturing Services) are valued 832 Bn $ and are projected to grow 1055 Bn by 2025. Domestic electronics manufacturing is estimated at USD 75 Bn of which 39 Bn constitutes EMS value. This is divided into 23.5 Bn domestic Mfg. and USD 15.5 Bn PCBS/Sub-Assembly imports. Further USD 53.5 Bn is finished Electronic Goods imports of which USD 17 Bn is EMS value. Thus total EMS opportunity loss is US$ 32.5 Bn (15.5 +17). The report estimates that EMS production can grow realistically from USD 23.5 Bn today to USD 152 Bn by 2025 at CAGR of 45%. This will meet 75% of the countries EMS requirement of US$ 203 Bn by 2025 against a total estimated market of 400 Bn.
https://elcina.com/elcina-task-force-report-on-electronic-components	ELCINA Task Force Report on Electronic Components Key Findings Current status of component manufacturing in India – Areas of competence vs Gaps and inadequacies Components which urgently require investments and growth in domestic manufacturing Emerging technology and new components for upcoming opportunities Constraints and bottlenecks to be addressed Overcoming Policy constraints, WTO (ITA-1) deadlock and Zero Duty issue Strategy for overcoming these constraints Eco-System requirements- Role of Central and State Governments
https://elcina.com/elcina-directory-of-indian-electronics-industry	ELCINA Directory of Indian Electronics Industry 2024-25 Description ELCINA Directory of Indian Electronics Industry – includes the updates on Indian Electronics Industry and a host of additional improved features covering business environment, statistical industry scan, company databases plus various projections. This handy compendium with its easy-to-read format attracts the attention of a growing number of users (within India and abroad) Apart from electronics industry, the users of this Directory range from financial institutions, commercial banks, FIIs, Consultancy organizations as well as industry promotion institutes across the world….

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FORTHCOMING EVENTS &  GENERAL INFORMATION 

	15th Source India 2026  10-11 February 2026, Chennai   Source India is ELCINA’s annual electronics sourcing and manufacturing event, scheduled for 10–11 February 2026 in Chennai. It brings together stakeholders from across the electronics supply chain to discuss sourcing, manufacturing capabilities, and industry developments across multiple electronics sectors.  Click here for details
	Elecxpo India 2026 20-23 February 2026, Chennai   Elecxpo India 2026 is an electronics industry exhibition that brings together manufacturers, suppliers, and solution providers across components, systems, and manufacturing technologies. The event focuses on developments in electronics production, supply chains, and emerging technology applications in the Indian market.  Click here for details
	Mobile World Congress (MWC) 2026 2-5 March 2026, Barcelona, Spain   MWC 2026 in Barcelona will bring together stakeholders from across the global telecom and technology ecosystem to discuss developments in mobile networks, connectivity, devices, and digital services. The event is expected to focus on areas such as 5G evolution, early discussions on 6G, enterprise connectivity, and the broader impact of digital infrastructure on economies and society.    Click here for details
	S33rd Convergence India 2026  23-25 March 2026, Bharat Mandapam, New Delhi   The 33rd Convergence India 2026, co-located with Smart Cities India 2026, will cover a wide range of ICT and technology areas including 6G, AI, IoT, fintech, blockchain, cloud, cybersecurity, space tech, mobility, media, and smart infrastructure. It will feature live demonstrations, B2B meetings, conferences, awards, and a startup hub with over 250 emerging companies.   Click here for details
	Embedded Tech India Expo 2026 23-25 March 2026, Bharat Mandapam, New Delhi   Embedded Tech India Expo 2026, organized by Exhibitions India Group, is India's leading platform for embedded systems developers, uniting hardware, software, tools, EMS, OEMs/ODMs, manufacturers, distributors, academia, and stakeholders from March 23-25 at Bharat Mandapam, New Delhi.   Click here for details
	Productronica China 2026 25-27 March 2026, Shanghai, China   Productronica China 2026 will be held from 25–27 March 2026 and will focus on technologies and solutions across the electronics manufacturing value chain. The event will cover areas such as electronic production equipment, testing, inspection, and smart manufacturing trends shaping the industry.   Click here for details
	Electronica India 2026 8-10 April 2026, India Expo Centre & Mart (IEML), Greater Noida The April 2026 North edition of Electronica India in Greater Noida at IEML will feature exhibition sectors from automotive to wireless technologies, drawing exhibitors and visitors for sourcing, networking, and innovation showcases.  Click here for details
	Productronica India 2026 8-10 April 2026, India Expo Centre & Mart (IEML), Greater Noida   Productronica India, to be held in April 2026, will highlight dynamic sectors like power electronics and manufacturing innovations, responding to shorter sourcing cycles and regional demands.   Click here for details

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