April 15, 2026 /SemiMedia/ — India has approved 75 projects under its Electronics Component Manufacturing Scheme (ECMS), as it steps up efforts to build a local supply chain and reduce reliance on imports.

Companies including TDK, Molex and Vishay Intertechnology were selected in the latest round in late March. The scheme, set to launch in April 2025, covers a wide range of products such as connectors and printed circuit boards, with total planned investment reaching about 616.7 billion rupees ($6.65 billion). Around 28 projects have already started setting up manufacturing facilities.

The program links incentives to capital spending and output, aiming to move the industry beyond basic assembly toward local production of key components.

India’s electronics sector has grown rapidly in recent years, driven by companies such as Apple and Samsung expanding assembly operations. However, more than 55% of components are still imported, mainly from mainland China and Hong Kong, highlighting gaps in the upstream supply chain.

Some industry figures remain cautious. K. Krishna Moorthy, former chairman of the India Electronics and Semiconductor Association, said current incentive programs have largely supported assembly rather than core component manufacturing.

Analysts say the ECMS scheme could help improve local value addition and support sectors such as smartphones if execution stays on track. The government aims to double the value added in electronics production through the program.

Still, building a full component ecosystem will take time. Industry participants point to limited long-term R&D investment and a shortage of skilled workers in component manufacturing. Training such talent could take at least three years, compared with assembly-focused labor.

To address this, the government has proposed setting up up to five training centers, each capable of training more than 5,000 workers.