In a significant push to boost domestic electronics manufacturing and reduce import dependence, the Indian government on Friday approved 22 new projects under the Electronics Components Manufacturing Scheme (ECMS). The approvals, led by major players like Tata Electronics, Motherson Group, and Foxconn's Indian arm Yuzhan Technology, represent a total investment commitment of ₹41,863 crore.
Major Investments and Job Creation Drive
The three flagship projects from Tata, Motherson, and Foxconn's Yuzhan Technology alone account for a massive ₹27,166 crore of the total approved investments. This move is strategically timed as India aggressively seeks to localize the production of mobile phone enclosures—the metal frames or casings that hold all other components. Until now, India has been heavily reliant on China for this critical part, which constitutes over 10% of a mobile phone's total material cost.
Company executives announced that work on these local projects is already in progress, with supplies to industries expected to begin as early as the next fiscal year. The initiative is set to generate substantial employment. Foxconn's project is projected to create 16,210 new jobs, while Motherson's foray into electronics will employ 5,741 people at its mobile enclosure plant. Tata's facility is expected to generate 1,500 jobs.
Strategic Shift in Global Supply Chains
Dinkar Malladi, Resident Director and Vice-President at Yuzhan Technology India, highlighted the strategic importance of this move for its parent company, Foxconn. He stated that this marks the first time a Foxconn Group entity is moving component manufacturing out of China. The company plans to establish a state-of-the-art "lights-out factory" with Industry 4.0 automation and aims to invest further in bringing its ecosystem to India.
Som Dutt Mehta, Chief Information Officer at Motherson Electronic Components, credited the ECMS scheme for enabling the industrial giant's diversification into electronics. He emphasized that the scheme is instrumental in boosting employment and enhancing India's share in the global components market.
Focus on Exports and High-Value Manufacturing
S. Krishnan, Secretary at the Ministry of Electronics and IT (Meity), underscored that the approval for capital-intensive mobile enclosure manufacturing was a strategic decision. The goal is to not only substitute imports but to build export-competitive capabilities. With the latest approvals, the total number of projects cleared under ECMS has reached 46, with cumulative investments soaring to ₹54,567 crore.
Krishnan stressed that for the ECMS to be meaningful, the production must be export-competitive. The new capacity in enclosures is envisioned as a major export-oriented project while also catering to domestic demand.
Expansion into Camera, Display, and PCB Manufacturing
Beyond enclosures, Friday's approvals marked India's expansion into local camera and display manufacturing. Dixon Technologies received the nod for a ₹550 crore investment to set up an assembly line for camera modules used in smartphones and other devices.
In a parallel development, Samsung's local display unit will invest ₹524 crore to assemble OLED displays for smartphones and televisions within the country. Additionally, the government approved nine new printed circuit board (PCB) manufacturing projects with a combined investment of ₹7,377 crore, further deepening the electronics component ecosystem.
This comprehensive push under the ECMS scheme signifies a pivotal step in India's ambition to become a global hub for electronics system design and manufacturing (ESDM), enhancing value addition, creating jobs, and strengthening its position in the international supply chain.
