India Electronics Scheme: Can India Become the World’s Electronics Workshop?

In the middle of a fast-changing global tech landscape, India is inching closer to a long-aspired goal — becoming not just a digital consumer, but a true global tech manufacturer. And now, the government is making a fresh and serious bet on a vital piece of that vision — deep component manufacturing.

The Ministry of Electronics and Information Technology (MeitY) has officially notified the Electronics Components Manufacturing Scheme, marking another ambitious leap to strengthen the backbone of India's electronics ecosystem. This isn’t just another policy on paper. It’s a critical, strategic move that plugs a long-standing gap in India's electronics value chain.

For years, India has built and assembled gadgets and exported smartphones — but a bulk of the components used have continued to come from overseas. This new scheme aims to change that by focusing on what’s inside the device — resistors, capacitors, sensors, lenses, switches, and more — the unsung heroes of the tech we use every day.

India Electronics Scheme 

We often talk about India becoming the "next China" in electronics manufacturing. But what separates a true tech manufacturing powerhouse from an assembler is self-reliance on components. That's where India has lagged, and that's where this new scheme is expected to deliver maximum impact.

At a recent press briefing in New Delhi, Union Minister for Electronics and IT, Ashwini Vaishnaw, shared why this scheme is critical for India's next growth phase in electronics.

“Our government has always been open-minded, consultative, and inclusive. We take everyone’s views into account before finalizing any law or policy,” he emphasized.

It’s this approach — engaging with industry, listening to stakeholders, and building policies ground-up — that’s making India's electronics story a force to reckon with globally.

The Numbers That Prove India’s Electronics Game is Strong

Let’s take a look at the momentum India already has. In the last financial year alone:

• Smartphone exports crossed ₹2 lakh crore

• Of this, iPhone exports contributed ₹1.5 lakh crore

• Over the last decade, India’s electronics production has grown 5x

• Exports have jumped 6x, with a CAGR of over 20%

• Production CAGR stands at 17%

• There are now 400+ manufacturing units producing a wide range of electronic components

This isn’t just a flash in the pan. It’s a decade-long movement that’s now entering a high-value zone — deep component manufacturing.

India's Three-Phase Electronics Journey

Minister Vaishnaw outlined India’s electronics evolution in three key phases:

1. Finished Goods Manufacturing – The early days of assembling and exporting devices.

2. Sub-Assembly Era – Building major parts in India, but still importing essential internal components.

3. Deep Component Manufacturing – Where we are now heading — building everything from the ground up.

And this final phase, he stressed, is where real technological depth, value addition, and ecosystem maturity come into play.

Horizontal Impact: One Scheme, Many Sectors

What makes the new Electronics Components Manufacturing Scheme even more interesting is its horizontal impact.

Rather than focus on just smartphones or laptops, the scheme spans across industries, including:

• Consumer electronics

• Automotive electronics

• Medical devices

• Power electronics

• Electrical grids

This cross-sectoral approach not only increases the potential impact but also opens doors for component-focused startups and SMEs to innovate and serve a wide market.

Focus on Passive Components – A Smart Strategic Move

The new scheme zeroes in on passive electronic components — things like:

• Resistors

• Capacitors

• Inductors

• Connectors

• Switches

• Sensors

• Relays

• Oscillators

• Lenses

Meanwhile, active components such as semiconductors will continue to be supported under the India Semiconductor Mission (ISM).

This segmentation ensures that the initiatives are not overlapping but complementary — a well-structured step forward.

Don’t Forget the Tools: Capital Equipment Incentives

Here’s something that often gets missed in public conversations — the equipment and tooling industry.

The government, in a big move, has also decided to incentivize the design and manufacturing of capital equipment used in electronics production.

Think of it this way: Just like a chef needs a top-notch kitchen to cook a gourmet meal, electronics makers need high-quality machines to build precision components.

This equipment — lasers, machines, etching tools, lithography systems — is mostly imported today. By encouraging Indian or global players to build them locally, the scheme is also creating a ripple effect in the tooling and equipment ecosystem.

Minister Vaishnaw gave the example of how companies like Applied Materials and Lam Research joined under the Semiconductor Mission — a similar wave is now expected in this component tooling space.

If you think this is just talk, think again.

Global players like Linde — a chemical and gas major essential for electronics manufacturing — are already setting up facilities in India. Several others are in advanced stages of discussion.

India isn’t just inviting investments — it’s laying down the groundwork and showing up with intent.

Tailored Incentives, Realistic Timelines, and Jobs!

Component manufacturing is no small feat. It’s capital-heavy, has long gestation periods, and requires patience — something the government seems to understand well.

Hence, the scheme offers three incentive structures, tailor-made for various players:

1. Turnover-linked incentives

2. Capex-linked incentives

3. Hybrid models

This flexibility will help attract everyone from large conglomerates to emerging startups — depending on their investment capacity and growth model.

And here’s a biggie: Employment generation is a must-have eligibility for applicants. Whether it’s a startup or a legacy firm, if you’re applying for benefits, you’ve got to create jobs.

This ties in beautifully with India’s broader vision of inclusive growth and high-quality job creation through industrial expansion.

India’s Global Play — Reducing Imports, Building Power

At its core, this scheme is about reducing India's dependence on imported components and positioning itself as a global hub for electronics value chain.

It’s not just about assembling phones or exporting gadgets. It’s about building the nuts and bolts — the base materials — that power future tech across industries.

And for India’s ambitious startup ecosystem, this opens up massive possibilities — not just in component manufacturing, but in:

• Designing new-age components

• Building capital tools and software

• Creating testing labs and quality benchmarks

• Serving auto-tech, health-tech, and energy-tech markets

Big Opportunity for Indian Startups

For a country that once relied heavily on imports for even basic electronics, this moment is a milestone. The Electronics Components Manufacturing Scheme is not just policy — it’s a roadmap for transformation.

And for India’s startup founders, engineers, component tinkerers, and industrialists — this could be the call to build India’s next big thing in core tech manufacturing.

Because the future won't just be about who can build the fastest app or get the most downloads — but also about who controls the parts inside the phone, the car, the device, the chip.

And India, it seems, is getting ready to own that future.