The IT ministry (MeitY) has approved 29 additional applications under the Electronics Component Manufacturing Scheme (ECMS). These new proposals are expected to bring in investments worth ₹7,104 Cr, generate 14,246 direct jobs and build a projected production pipeline of ₹84,515 Cr.

With this, the total number of applications cleared by MeitY under the scheme now stands at 75. Overall, the total projected investment under the ECMS now stands at ₹61,671 Cr, with an estimated 65,040 direct employment opportunities.

In a statement MeitY said that the newly approved projects span 16 product categories, including display modules, capacitors, connectors, resistors, flexible PCBs and lithium-ion cells. These components are used across sectors such as mobile manufacturing, telecom, consumer electronics, automotive and IT hardware.

The approvals also include some firsts for India, such as units for manufacturing SMD (surface mount device) passive components based on tantalum capacitors, flexible printed circuit boards, and rare earth permanent magnets.

The companies that received approvals under the latest batch include Dixon Display Technologies, VVDN Technologies, Molex India, Vishay Components India, TDK India and Syrma Strategic Electronics.

The Centre also cleared proposals to strengthen supply chains for electronics components. These include projects for copper clad laminates, metallised films for capacitors and rare earth magnets. Lohum Cleantech is among the companies that will set up a rare earth magnet facility under ECMS.

In addition, six firms, including Titan Engineering and Automation, ASM Technologies and Bharat FIH, also received approvals to manufacture capital equipment.

While addressing a press briefing to announce the approvals, IT minister Ashwini Vaishnaw said India needs to focus on building in-house design capabilities and a stronger domestic supply chain. He also highlighted the need for better quality standards and workforce training.

Chiming in, MeitY secretary S Krishnan said that the government has moved quickly on approvals and expects companies to match that pace in execution.

Lauding the approvals, industry body India Cellular and Electronics Association said that the increased outlay of ₹40,000 Cr for the ECMS, along with the performance of the PLI scheme, could help accelerate growth in the electronics manufacturing sector.

The higher outlay was announced by finance minister Nirmala Sitharaman in the Union Budget 2026. The revised corpus is about 75% higher than the earlier ₹22,919 Cr.

Launched in April 2025, the ECMS aims to build a $500 Bn electronics component manufacturing ecosystem in India by FY32. The scheme offers a mix of incentives, including those linked to turnover, capital expenditure and employment.

In October 2025, the government said that it received investment proposals to the tune of ₹1.15 Lakh Cr under the scheme, nearly double its original target of ₹59,350 Cr. Earlier, the IT ministry had also said it received production estimates of ₹10.34 Lakh Cr against a target of ₹4.5 Lakh Cr.

Separately, the Union government informed the Parliament that it has not received any concerns regarding excess water consumption by data centres in the country.

In a written reply before the Rajya Sabha, minister of state (MoS) for Jal Shakti Raj Bhushan Choudhary said India’s data centre capacity has grown from 375 MW in 2020 to over 1,500 MW by 2025.

The government said newer technologies are helping reduce water and energy use. These include direct-to-chip liquid cooling, adiabatic cooling and immersion cooling. Companies are also using high-density racks to handle AI and high-performance computing workloads more efficiently.

The statement added that data centres are regulated under groundwater extraction rules notified by the Jal Shakti ministry, with guidelines updated as recently as March 2023.

The push for data centres is part of the government’s broader plan to strengthen digital infrastructure and improve delivery of digital services.

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