Govt Nod To 29 Component Manufacturing Proposals But Vaishnaw Flags Poor Show On Design-Led Localisation

The Centre on Monday cleared 29 applications under the latest tranche of the Electronics Component Manufacturing Scheme (ECMS). The approval paves the way for a cumulative investment of Rs 7,104 crore and will generate over 14,000 jobs.

The projects are expected to generate components worth Rs 84,515 crore, said S Krishnan, Secretary, Ministry of Electronics and IT (MeitY).

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The approvals span key segments such as display modules, capital goods, relays, lithium-ion cells, and rare earth magnets—marking India’s first facility for manufacturing permanent magnets from rare-earth oxides.

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The scheme is part of the government’s efforts to reduce import dependence and strengthen domestic value chains in electronics manufacturing. So far, it has approved a total of 75 applications under the scheme.

With the latest approvals, the government’s initial investment targets have already been breached. The government aims to build a $500 billion electronics ecosystem by 2030.

However, even as investments pick up, the government has reiterated the importance of quality and design capabilities.

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Union IT Minister Ashwini Vaishnaw has flagged concerns over the lack of strong design capabilities and adherence to Six Sigma quality standards among applicants.

“Manufacturing will have certain value, but design will have a huge value… to capture a large part of that value, the design must be done in India,” Vaishnaw said, underlining that there is “no way out” of investing in domestic design ecosystems.

The minister had raised similar concerns while launching the scheme last year.

He also expressed dissatisfaction over the absence of a structured Six Sigma quality programme within the sector.

The Centre may pause fresh approvals under the component PLI scheme until companies demonstrate stronger design depth and quality benchmarks, he said, warning the industry.

“If anyone wants to proceed without design, they can leave the programme,” he said.

The government has emphasised the need to build indigenous design teams and improve manufacturing precision to ensure long-term competitiveness.

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