New Delhi: India’s push to build a stronger electronics manufacturing base has gained fresh momentum, with the government clearing 29 new projects under the Electronics Component Manufacturing Scheme. The approvals, announced on March 30, involve investments worth ₹7,104 crore and cover a wide range of components used in modern devices.
This move signals a deeper shift in strategy. For years, India focused largely on assembling finished products. Now, the focus is moving towards building core components within the country. That change may take time, but the intent is becoming clearer with each new round of approvals.
Rare-earth magnet unit, approved
The government has approved India’s first rare earth permanent magnet manufacturing unit, with an investment of ₹700 crore.
Electronics and IT Minister Ashwini Vaishnaw highlighted the importance of this project, stating, “The entire technology of this company is their own… their own IP.”
Rare earth magnets are a critical part of many technologies, including electric vehicles, electronics, and defence systems. Global supply of these materials is currently concentrated in a few regions. Officials believe that building local capability in this area could help India reduce dependence over time and strengthen its position in the global supply chain.
Projects cover multiple sectors and states
The 29 projects span 16 different product segments and are spread across eight states. Karnataka and Maharashtra account for the highest number of approvals in this batch.
According to the government, these projects will contribute to large-scale production of electronics components. The expected output is valued at ₹84,515 crore. At the same time, the investments are projected to generate over 14,000 jobs across manufacturing and related sectors.
Localisation targets signal long-term plan
The government has outlined clear localisation goals as part of this initiative. It expects domestic production to meet around 25 percent of rare earth magnet demand. In addition, targets include 50 percent localisation in printed circuit boards and 61 percent in lithium ion batteries.
Officials see this as part of a long-term plan to build a more self-reliant electronics ecosystem. Industry experts say the success of these projects will depend on execution, supply chain development, and skilled workforce availability.
The story is still developing, and more details around participating companies and timelines are expected in the coming weeks.