India’s Electronics Component Scheme 2025 | MeitY Boosts Manufacturing

India has taken a significant leap toward self-reliance and global competitiveness in electronics with the official launch of the Electronics Components Manufacturing Scheme 2025 by the Ministry of Electronics and Information Technology (MeitY). As smartphone exports cross ₹2 lakh crore in FY25—powered by ₹1.5 lakh crore worth of iPhone exports—this scheme is designed to deepen the domestic electronics ecosystem, reduce import dependency, and attract global players to invest in India's manufacturing and component supply chain. For long-term investors and electronics manufacturers, this is a crucial opportunity to align with India's ambitious "Make in India" and "Digital India" vision.

📢 Empowering India's Leap Towards Global Electronics Leadership

🗓️ Posted on: 08 April 2025 | Source: PIB Delhi

📍 By: Ministry of Electronics & Information Technology (MeitY)

🧭 Overview

The Ministry of Electronics and Information Technology (MeitY), under the Azadi Ka Amrit Mahotsav initiative, has officially notified the Electronics Components Manufacturing Scheme, marking a transformative step in India's journey to become a global hub for electronics manufacturing. This move is strategically designed to deepen India’s electronics manufacturing ecosystem, expanding beyond final assembly to the critical core of component manufacturing.

📈 India's Electronics Sector – A Decade of Exponential Growth

Union Minister Shri Ashwini Vaishnaw, in a recent press conference, shared groundbreaking metrics that reflect India’s ascent in global electronics:

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  📱 Smartphone Exports (FY 24-25): ₹2 Lakh Crore

  
  


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  🍏 iPhone Contribution Alone: ₹1.5 Lakh Crore

  
  


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  🏭 Electronics Production: Grown 5x in the last 10 years

  
  


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  🌍 Electronics Exports: Grown 6x, with a CAGR over 20%

  
  


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  🧑‍🏭 400+ Production Units: Engaged in diversified electronics components

  
  

This rapid development reflects India’s move through three distinct phases:

1️⃣ Assembling Finished Goods →

2️⃣ Building Sub-Assemblies →

3️⃣ Now entering Deep Component Manufacturing – the most value-accretive phase.

⚙️ What the Scheme Offers

The Electronics Components Manufacturing Scheme has been carefully designed with the following key pillars:

🔹 Horizontal Expansion

The scheme spans sectors such as consumer electronics, automobiles, medical devices, power grids, and industrial electronics—creating a powerful multiplier effect across the economy.

🔹 Passive Component Focus

While active components fall under the India Semiconductor Mission, this scheme emphasizes the production of passive components like:

🔧 Resistors, Capacitors, Inductors, Connectors, Relays, Switches, Sensors, Speakers, Oscillators, Films, and Lenses.

🔹 Capital Equipment & Tooling Support

Recognizing the vital role of high-precision machinery, the scheme supports design and manufacturing of capital equipment. This is in line with the model that encouraged global players like Applied Materials and Lam Research to invest in India.

🔹 Tailored Incentives

Acknowledging the higher capex and longer gestation period involved in component manufacturing, the scheme offers three flexible incentive models:

✅ Turnover-linked incentive

✅ Capex-linked incentive

✅ Hybrid model

🔹 Mandatory Employment Generation

A standout feature: all applicants—whether manufacturers or toolmakers—must contribute to job creation, reinforcing the government’s focus on inclusive, sustainable development.

🔍 Long-Term Investor Perspective

The Electronics Components Manufacturing Scheme unlocks multi-decade investment opportunities. India is now entering the high-value phase of its electronics journey, where component-level innovation and integration will define the future.

With global supply chains realigning, India’s capabilities in passive component production and capital equipment manufacturing could position it as a preferred partner in the global electronics ecosystem.

💡 Investor Outlook: Key Growth Triggers

🔋 Capex-Driven Expansion in Component Manufacturing

🌐 Export-Led Growth in Smartphones & Electronics

🛠️ Localization of High-End Tools and Precision Machinery

💼 Policy-Linked Employment & Incentives

🔁 Multiplier Effect Across Healthcare, Auto, Infra, and Power

Sectors:

#ElectronicsManufacturing #DigitalIndia #PassiveComponents #CapitalEquipment #IndiaGrowthStory #SemiconductorMission #MakeInIndia #PLI #TechManufacturing#PolicyToPortfolio #IndiaAssemblingToInventing #LongTermWealth #ComponentSuperpower #InvestInIndia

⚠️ Disclaimer

This blog is intended purely for educational and informational purposes and should not be construed as investment advice. Investors must conduct their own due diligence or consult a registered financial advisor before making any investment decisions. All financial data is as of the reporting period shared by official government sources.

With a structured incentive model, focus on job creation, and support for both passive components and capital equipment, the Electronics Components Manufacturing Scheme 2025 is more than a policy—it's a signal of India's readiness to lead the global electronics value chain. For investors, manufacturers, and stakeholders across sectors like consumer electronics, automotive, medical devices, and industrial systems, this scheme offers both strategic entry and long-term compounding opportunities. Stay ahead by aligning your investment lens with India’s evolving industrial and export ambitions.