Last week, the government approved 31 fresh proposals under the Electronics Components Manufacturing Scheme (ECMS), involving an investment of ₹7,877 crore. The projects span 10 states and are expected to generate production worth ₹82,243 crore and create 9,588 direct jobs.
The approvals cover camera and display modules, anode materials and other components and manufacturing inputs. The government said some of these, including filters, coils, speakers and certain raw materials, will see domestic manufacturing for the first time.
The push comes as India’s electronics production has expanded rapidly, but the country still imports many of the high-value components that go into smartphones, televisions, laptops and other devices.
How much is made in India?
India is now the world’s second-largest mobile phone manufacturing country by volume. Mobile phone manufacturing in India rose from ₹18,900 crore in 2014-15 to ₹6.27 trillion in 2025-26, while exports increased from ₹1,566 crore to ₹2.60 trillion over the same period, according to government data.
Electronics production rose from about ₹1.9 trillion in 2014-15 to ₹13.11 trillion in 2025-26, while electronics exports increased from ₹38,000 crore to ₹4.24 trillion, government data showed.
However, much of this growth has been driven by assembly rather than deep localisation. Industry estimates cited by the Ministry of Electronics & IT put domestic value addition in electronics manufacturing at 18-20 per cent.
To encourage local manufacturing, the central government last month removed customs duties on components used in display assemblies for automobiles, medical devices and industrial equipment. The exemption also covers components for wireless charging modules in mobile phones and machinery used to manufacture lithium-ion cells.
The customs duty exemption will remain in force until March 31, 2029. Before the change, these products attracted customs duties of 7.5-15 per cent.
The government has also expanded the scope of machinery eligible for duty-free imports for lithium-ion cell production. The broader list replaces the earlier, more limited list and removes end-use restrictions.
Which components does India still import?
India has built significant capacity in smartphone assembly and now makes several components locally, including PCB assemblies, chargers, batteries, mechanical housings and cables. However, it remains dependent on imports for advanced display panels, memory chips, image sensors and several specialised components.
The biggest gap is in semiconductors and other high-value electronic components.
Crisil’s August 2026 analysis showed that electronics was among India’s three most import-intensive manufacturing sectors, with imports accounting for 29.8 per cent of total supply.
In FY26, India imported $30 billion worth of electronic integrated circuits, while imports of records and tapes stood at $5.3 billion. Semiconductors and electric accumulators were $4.9 billion each, while electric circuit apparatus imports were $2.1 billion, according to Crisil data.
Crisil said India’s import dependence was also high for electrical cables and wires at 36.9 per cent, organic chemicals at 36.5 per cent, batteries at 29.7 per cent and plastic products at 23.9 per cent.
For some critical products, the dependence is even sharper. Trade data by NITI Aayog showed that India had a net trade deficit of $23.5 billion in chips in 2024. The deficits stood at $4.3 billion for display panels and $2.7 billion for batteries. The figures highlight the gap between domestic component manufacturing and the growing needs of India’s device-assembly sector.
What changes with ECMS?
The ECMS is intended to address this gap by shifting policy support from finished-device assembly towards components, sub-assemblies, materials and capital goods.
The latest approvals cover 20 target-segment products. These include camera, display and optical-transceiver modules; connectors, transducers, speakers, microphones, relays, antennas, coils, filters and capacitors; as well as anode material, rare-earth permanent magnets, acetylene black and electrolyte additives.
With the latest approvals, 106 applications covering 30 products across 15 states have been cleared. They represent ₹69,548 crore of investment and projected production of ₹5.34 trillion, with 74,628 direct jobs expected, according to the government.
The scheme was notified in 2025 and its outlay was raised to ₹40,000 crore in the Union Budget 2026-27. Its broader aim is to build a domestic supplier base so that manufacturers do not have to import as many critical inputs.
China and Vietnam offer lessons
India has made progress in electronics assembly, particularly in smartphones, but it remains behind China in the depth of its component ecosystem. China followed a similar path, beginning with large-scale assembly before building capabilities across components, semiconductor packaging and chip fabrication.
According to Reed Intelligence analysis, the China consumer electronics market was valued at $50.1 million in 2025 and is projected to reach $84.66 million by 2034, growing at a compound annual growth rate (CAGR) of 5.97 per cent between 2026 and 2034. Electronic devices were the largest product-type segment in 2025 and are expected to remain the most attractive segment, with the fastest growth during the forecast period.
Vietnam, meanwhile, has emerged as another major electronics manufacturing base, particularly for global smartphone companies. Its consumer electronics market was valued at $6.4 billion in 2025 and is projected to reach $9.8 billion by 2034, registering a CAGR of 4.68 per cent between 2026 and 2034, according to IMARC Group. The market is expanding on the back of rising demand for smart, energy-efficient electronic devices and home appliances.
 "India's electronics components push: What is made locally, what is imported")
