In a major step toward strengthening India’s electronics manufacturing ecosystem, the Government of India has approved projects worth $626 million (₹5,200 crore) to enhance electronics components and semiconductor parts production across the country.

The approval was made under the Modified Scheme for Semiconductor and Display Fab Ecosystem and the Production Linked Incentive (PLI) Scheme for Components Manufacturing, according to an announcement by the Ministry of Electronics and Information Technology (MeitY) on October 28, 2025.

These initiatives aim to reduce India’s dependency on imported electronics components and make the country a global hub for semiconductor and electronics exports.

🔹 Focus on Key Sectors: Semiconductors, Sensors, and Power Electronics

The newly approved projects focus on critical electronics components, including semiconductor devices, sensors, microcontrollers, and power electronics parts.

According to MeitY, the funding will be allocated to 12 manufacturing projects across states such as Tamil Nadu, Karnataka, Gujarat, and Uttar Pradesh, where industrial clusters for electronics manufacturing are already emerging.

Minister of Electronics and IT, Ashwini Vaishnaw, stated:

“These approvals mark a decisive move towards building a resilient and self-reliant electronics manufacturing base in India. Our goal is to achieve full value-chain capability in semiconductor and component design.”

🔹 Strengthening the “Make in India” Vision

The move aligns with Prime Minister Narendra Modi’s “Make in India” and “Digital India” initiatives, aimed at transforming the nation into a global manufacturing powerhouse.

With the new investments, India aims to increase domestic value addition in electronics manufacturing from 18% to 35% by 2027. The approved projects are expected to generate over 40,000 direct and indirect jobs while significantly enhancing the country’s supply chain resilience.

🔹 PLI and Incentive-Based Manufacturing Growth

The $626 million allocation falls under the expanded PLI scheme for Large-Scale Electronics Manufacturing, which provides financial incentives of up to 6% on incremental sales of locally manufactured components.

Under this scheme, companies involved in semiconductors, PCB fabrication, sensors, and display units will receive direct support for setting up new facilities or expanding existing ones.

Leading domestic and international firms are expected to participate, including Tata Electronics, Dixon Technologies, Bharat Electronics, and Foxconn India, which have already signaled interest in scaling up component manufacturing.

🔹 Global Context and Industry Response

India’s move comes amid rising global demand for semiconductor components and the ongoing realignment of electronics supply chains away from China.

Industry experts view this as a strategic opportunity for India to position itself as a trusted global manufacturing alternative, especially in collaboration with partners like the U.S., Japan, and Taiwan.

Ajay Prakash Sawhney, former IT secretary, commented:

“India is finally closing the gap in upstream electronics production. This investment is not just about self-reliance — it’s about global competitiveness.”

🔹 Official Statements and Implementation Timeline

The government confirmed that disbursement of funds and project implementation will begin by January 2026, with expected completion within two to three years.

A dedicated portal for project tracking and progress transparency will be available at https://www.meity.gov.in.

🔹 Official Sources and References:

• Ministry of Electronics & IT (MeitY): https://www.meity.gov.in