The government may introduce rules requiring companies operating under the Electronic Component Manufacturing Scheme (ECMS) to commit a minimum level of investment in designing capability, officials told ET.
Many companies in India's electronics sector only assemble products. The government now wants them to get into the high-value design work, too. For this, the ministry of electronics and information technology (MeitY) expects ECMS participants to formally submit the number of designing talent they will employ as a share of their overall employee base, as well as proposed investments in raising designing capabilities over the project construction period and the first two years afterwards, the officials said.
The push towards designing locally began about a month ago, after electronics and IT minister Ashwini Vaishnaw cautioned that ECMS participants not investing in designing capabilities will be "weeded out" from the scheme and disbursals for the ₹40,000 crore scheme will be stopped by changing its guidelines.
Many companies in India's electronics sector only assemble products. The government now wants them to get into the high-value design work, too. For this, the ministry of electronics and information technology (MeitY) expects ECMS participants to formally submit the number of designing talent they will employ as a share of their overall employee base, as well as proposed investments in raising designing capabilities over the project construction period and the first two years afterwards, the officials said.
The push towards designing locally began about a month ago, after electronics and IT minister Ashwini Vaishnaw cautioned that ECMS participants not investing in designing capabilities will be "weeded out" from the scheme and disbursals for the ₹40,000 crore scheme will be stopped by changing its guidelines.
