Why India’s New Electronics Components Manufacturing Scheme is a Gamechanger for Indian Industry?
If you are in the business of electronics—whether you make mobile phones, televisions, or even the parts that go inside—there’s some big news you shouldn’t miss. The Ministry of Electronics and IT (MeitY) has just come out with the Electronics Components Manufacturing Scheme, 2025. For most people, it might sound like another government announcement, but for those who are serious about growing in this industry, this scheme could be a turning point.
Page Contents
The Real Picture: Where Do We Stand Today?
Let’s face it—India has made great progress in assembling electronic goods. You’ll find “Made in India” labels everywhere now. But if you open up those products, you’ll realise the key components—the camera module in your phone, the display, the PCB board, the tiny chips and batteries—are mostly imported from other countries.
So, while our factories are busy, a large part of the value and profit goes outside India. We’re still depending on others for the “brains and heart” of these products.
What’s the Problem with Making Components Here?
Anyone from the industry will tell you—making these tiny parts in India isn’t a walk in the park. Setting up a component plant needs a huge investment, state-of-the-art machines, a super-clean environment, and skilled manpower. All this takes time, money, and lots of patience.
Plus, global competition is tough. Countries like China and Taiwan have been doing this for decades. Their scale is massive, their technology is advanced, and their costs are low. So, for an Indian entrepreneur, even if you want to start, it feels risky and complicated.
What Is This New Scheme All About?
This is where the government’s new scheme tries to bridge the gap. Instead of just giving tax breaks or cheap loans, the government is now saying, “If you invest in making electronic components here, or if you ramp up your production, we’ll directly support you financially.” The support can come in three ways:
- On Turnover: If your production and sales go up, you get a reward on that.
- On Investment: If you put in capital for new machinery or a new plant, you get an incentive on that.
- Hybrid: For some products, you can get a mix of both.
This means less risk for companies and more encouragement to actually build and scale up in India.
What All Is Covered?
The scheme is smartly structured. It isn’t just about making one or two parts. It covers:
- Sub-assemblies (like camera modules and display units),
- Basic electronic components (resistors, capacitors, PCBs, Li-ion cells, enclosures, etc.),
- Advanced parts (high-density PCBs, SMD passive components), and
- Machines and raw materials needed to make all these parts.
So, whether you are in finished goods, components, or even if you supply the equipment and materials, there’s an opportunity here.
Who Can Apply?
Any company—Indian or global—that is ready to invest in India, either by starting a new unit or expanding their current one, is eligible. You just need to plan your project well, because every product line needs a separate application and business plan.
What Are the Basic Requirements?
To get the incentive, there are three main conditions:
1. You have to invest in plant and machinery.
2. You need to show sales growth—the scheme rewards those who scale up.
3. You need to create jobs. If you don’t meet the job target, your incentive may get reduced.
Why Is This Scheme a Big Deal?
If you look at it simply, this scheme is the government’s way of saying, “We want India to not just assemble electronics, but to own the entire value chain.” It’s about moving up from being a market to being a global manufacturing hub.
For entrepreneurs, it’s a chance to take calculated risks—with the government sharing some of that risk. For established players, it’s an opportunity to integrate deeper, save costs, and even target exports.
If India can get the electronics components ecosystem right, it will mean more jobs, more local value addition, and less dependence on imports. The real benefit will be in the years to come, when we can proudly say that the “brains and heart” of our devices are truly made in India.
If you’re considering exploring this scheme for your business, it’s a good time to start planning. Understanding the details, eligibility, and compliance will be key. But one thing is clear—India is serious about becoming a global electronics powerhouse, and this scheme is an open invitation to be part of that journey.
*****
Disclaimer: The views expressed in this article are strictly personal and are not intended to be construed as legal or professional advice. For specific feedback or guidance relating to the Electronics Components Manufacturing Scheme, 2025, readers are encouraged to write to info@rsalegalsolutions.com
Source: MeitY Notification – Electronics Components Manufacturing Scheme, 2025, Gazette of India, Extraordinary, Part I—Section 1, dated 8 April 2025
Author Bio
nice