The government is committed to cooperative federalism, allowing industries to choose their preferred States for investment and while there is competition among States, the government supports their choices without pushing any particular industry to a specific location, Ashwini Vaishnaw, Minister of Electronics and Information Technology has said.
The government is actively encouraging domestic sourcing and consumption. While there are no mandates, structured buyer-seller meets will be organised to facilitate connections between finished product manufacturers, component suppliers, and material providers…Centre will help the industry get into that mode, he said recently on the development of electronics manufacturing industry.
“We will be supporting big time on the design, quality…and local sourcing (domestic) so that these become part of the culture of our industry. It has to be done by the industry, but we will be supporting them. The effort will be 80 per cent from the industry and 20 per cent from the government. That is the way every other country has done whether it’s Taiwan, Japan, China or South Korea, everybody has done that,” Vaishnaw said.
The Centre last week had approved 22 applications for the third phase of Electronics Component Manufacturing Scheme (ECMS 3.0) worth ₹41,863 crore to be spread across eight States. According to MeitY, these 22 manufacturing facilities will be spread across India. For instance, four each in Maharasthtra and Karnataka; three each are coming up in Andhra Pradesh, Haryana, Uttar Pradesh and Tamil Nadu; and one each in Rajasthan and Madhya Pradesh.
Supply chain issues
Vaishnaw further said that the government was also addressing supply chain issues for capital machinery and raw material imports, by working closely with the industry, to provide support where needed.
The significant increase in investment proposals, particularly in precision enclosures, highlights India’s growing capabilities in complex manufacturing. The focus on mechanical design and manufacturing, which was once a challenge, has now enabled India to meet 100 per cent of its demand for enclosures and even export them, he noted.
India’s initiatives in electronics component manufacturing are fully compliant with global regulations and agreements, ensuring a strong position against any trade distortion charges, he added.
“There are companies in Bengaluru, Pune, Rajkkot, Coimbatore which are today manufacturing the machines which are used in manufacturing of the electronics and semiconductors also…These are all indigenous,” Vaishnaw said.
According to MeitY, in the ECMS 3.0 also, mobile enclosure manufacturing has got the highest investment proposals of .₹27,166 crore (out of the total ₹41,863 crore ) from three companies including Tata Electronics, Foxconn’s Indian arm Yuzhan Technology and Motherson Group.
Mobile enclosures are structural housings that protect and support internal electronic components, widely used in smartphones and handheld devices to ensure mechanical strength, thermal management, and product durability.
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Published on January 4, 2026
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