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Cabinet Approves Third Tranche of ECMS: ₹41,863 Crore Push to Transform India into Global Electronics Hub

Source ani

New Delhi, January 2, 2026 – In a significant move to bolster India’s domestic tech ecosystem, the Ministry of Electronics and Information Technology (MeitY) on Friday approved the third tranche of the Electronics Components Manufacturing Scheme (ECMS).

The latest round of approvals involves a staggering investment of ₹41,863 crore and covers 22 new applications from major global and domestic players. This injection is expected to generate a production value of approximately ₹2.58 lakh crore and create over 33,700 direct jobs.

Strengthening the Value Chain

The ECMS is a central pillar of India’s strategy to move beyond assembly and into high-value component manufacturing. This third tranche focuses on 11 critical product segments, categorizing them into bare components, sub-assemblies, and supply chain essentials.

Key Investment Highlights

Total Investment: ₹41,863 crore (Third Tranche).

Total Approvals to Date: 46 companies (Cumulative investment of ₹54,567 crore).

Employment Boost: Projected 33,791 direct jobs from this tranche alone.

Geographic Reach: Projects will be spread across 8 states: Tamil Nadu, Uttar Pradesh, Haryana, Karnataka, Maharashtra, Andhra Pradesh, Rajasthan, and Madhya Pradesh.

Major Players and Strategic Projects

Union Minister for Electronics and IT, Ashwini Vaishnaw, handed over approval letters to the selected firms, which include industry giants like Samsung Display, Foxconn (via Yuzhan Technology), Tata Electronics, Dixon Technologies, and Motherson.

Category Key Components Approved Notable Companies

Bare Components Printed Circuit Boards (PCBs), Li-ion Cells, Capacitors, Enclosures Motherson, Vital Electronics, NPSPL Anode Material

Sub-Assemblies Camera Modules, Display Modules, Optical Transceivers Samsung Display Noida, Dixon Electroconnect, Kunshan Q Tech

Supply Chain Aluminium Extrusion, Anode Materials, Copper Clad Laminates Hindalco Industries, Amara Raja-ATL

Tamil Nadu Leads the Surge

Tamil Nadu has emerged as the primary beneficiary of this tranche, securing nearly 65% of the total investment (approx. ₹27,166 crore). The state is set to host major facilities for Foxconn and Motherson, further cementing its reputation as the “Electronics Hub of India.”

“This tranche marks a decisive step toward self-reliance. We are not just making devices; we are making the brains and bones of those devices here in India,” stated Minister Ashwini Vaishnaw during the event.

The Road to 2030

The ECMS is part of the government’s broader vision to scale India’s electronics manufacturing to $500 billion by 2030-31. By incentivizing the production of complex items like multi-layer PCBs and anode materials for batteries, the scheme aims to reduce heavy import dependence on countries like China and integrate Indian manufacturers into the Global Value Chain (GVC).

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