NEW DELHI: There is no impact on the electronics sector so far due to the ongoing conflict in West Asia, said the Minister of Electronics and Information Technology, Ashwini Vaishnaw, on Monday.
Vaishnaw, who approved 29 applications under the fourth tranche of the Electronics Component Manufacturing Scheme, also mentioned that this is an evolving situation and the government will continue to monitor it closely. He added that the industry believes the conflict will be short-term, and therefore there is no need for any special policy intervention.
“We have consulted almost every industry association in the electronics sector. All of them—whether in mobile manufacturing, IT hardware, or passive components—have said that so far there is no impact. However, this is an evolving situation, and we will continue to monitor it closely,” said Vaishnaw.
The government on Monday approved 29 applications, taking the total number of approved applications so far to 75, with cumulative investments pegged at ₹7,104 crore. As per the government, the fresh investment proposals will create as many as 14,246 new jobs in the segment. The minister said that around 28 projects have already started manufacturing in the country. India's electronics production has grown from ₹1.9 lakh crore in FY15 to ₹11.3 lakh crore in FY25, marking a six-fold increase, official data showed. Exports rose from ₹38,000 crore to ₹3.27 lakh crore in the same period.
The minister also pulled up industry body India Cellular and Electronics Association (ICEA) and its member firms for not adhering to the integrated approach set by MeitY to boost high-quality and self-reliant electronics manufacturing. He asked to come up with a structured plan within 15 days.
“The government has not received the desired level of support from the industry and that more proactive steps are needed. The government is prepared to take strict measures, including stopping approvals and funding,” said Vaishnaw.
Once companies start manufacturing these components, which are vital for electronics manufacturing in the country, it will increase value addition and also enable exports. According to the government, capacitors will meet about 16% of domestic demand, connectors about 33%, laminates nearly 100%, and lithium-ion cells for the electronics segment around 61% of demand. Rare earth magnets for the electronics industry will meet about 45% of demand. Relays will meet 100% of domestic demand, and India will also become a global exporter of relay components. Metallized films—films on which a metal layer is deposited—will meet about 44% of demand. Printed circuit boards (PCBs) represent a very large market.
“India currently imports around ₹40,000 crore worth of PCBs. With the new capacities, we will be able to meet about 50% of our domestic demand, leading to a substantial reduction in imports,” said the minister.
On the semiconductor side, the minister said that the first plant of Micron Technology was inaugurated by the Prime Minister on 28 February, and another semiconductor plant is set to be inaugurated shortly.
On memory chips, the minister said that the current surge in demand is not due to the West Asia conflict. It is primarily driven by the rapid expansion of AI data centres. The Micron Technology facility in India will contribute significantly, accounting for a meaningful share of global production and scaling up rapidly. This should help meet demand in the coming months.
“The 4th tranche of approvals under the Electronics Component Manufacturing Scheme (ECMS) is a welcome step towards strengthening India’s electronics manufacturing ecosystem. The scheme has generated strong industry confidence and is encouraging fresh investments in the components segment, which is critical for enhancing domestic value addition. Continued policy support, ease of doing business, and a stable, long-term framework will further enable the industry to scale and integrate with global value chains. We remain confident that such initiatives will significantly contribute to positioning India as a global electronics manufacturing hub,” Pankaj Mohindroo, Chairman of ICEA.