**Executive Summary**
This document refers to the reply in the Lok Sabha Starred Question No. *65 for 04.02.2026, regarding the domestic manufacturing of critical electronic components. It details the Government of India's initiatives to promote domestic manufacturing of electronic components and reduce import dependence, in line with the "Make in India" and "Atmanirbhar Bharat" vision, with plans to further expand the semiconductor manufacturing ecosystem. The initiatives include schemes like ECMS, Semicon India Program, and the Design Linked Incentive Scheme.
**Key Points / Main Content**
* **Government Strategy:**
* The Government's semiconductor strategy is based on Make in India and Atmanirbhar Bharat.
* The strategy focuses on developing manufacturing from finished product assembly to chip design, fabrication, and packaging.
* **Electronics Manufacturing Growth:**
* Electronics manufacturing has expanded significantly in the last 11 years.
* Production of electronics goods increased 6 times (2014-15 to 2024-25).
* Export of electronics goods increased 8 times (2014-15 to 2024-25).
* Production of mobile phones increased 28 times (2014-15 to 2024-25).
* Export of mobile phones increased 127 times (2014-15 to 2024-25).
* **Electronics Components Manufacturing Scheme (ECMS):**
* Aims to develop manufacturing of key components like PCBs, passive components, camera modules, and optical transceivers.
* ECMS outlay increased from Rs. 22,900 Cr to Rs. 40,000 Cr in Budget 2026-27 due to industry's unprecedented response.
* Approved applicants manufacture components for consumer electronics, telecom, automotive electronics, etc.
* **Semicon India Program:**
* Launched in 2022 to widen the supply chain ecosystem for active electronics components.
* Focused on developing the entire value chain of semiconductors including designing, fabrication, assembly, testing, and packaging.
* Ten (10) units have been approved with cumulative investment of Rs 1.6 Lakh Crore.
* **Design Linked Incentive (DLI) Scheme:**
* 24 projects have been approved under the DLI Scheme for financial support to design semiconductor chips.
* **Design Infrastructure Support:**
* Government provides free access to Design Infrastructure Support with access to advanced chip design tools.
* Provides IP cores, multi-project wafer (MPW) fabrication services, and prototyping facilities.
* **Semicon 2.0:**
* Announced in Union Budget for 2026-27 to further expand semiconductor manufacturing ecosystem.
**Impact Analysis**
**Electronics Manufacturers**
*Impact:*
The government's initiatives aim to increase domestic manufacturing of electronic components, which could lead to lower costs and greater access to essential parts. They have access to advanced chip design tools, intellectual property (IP) cores, multi-project wafer (MPW) fabrication services, and prototyping facilities.
*Action Required:*
Electronics manufacturers should stay informed about government schemes and policies to take advantage of incentives and support programs. They should consider expanding their operations to include component manufacturing, taking advantage of increased government support.
**Semiconductor Designers**
*Impact:*
Semiconductor designers will be able to obtain support, financial aid, access to chip design tools, and access to fabrication services.
*Action Required:*
Semiconductor designers should apply for the Design Linked Incentive Scheme for financial assistance.
**Investors**
*Impact:*
Investors now have the opportunity to invest in semiconductor manufacturing and development in India due to the increased government support.
*Action Required:*
Investors should evaluate the economic potential of the schemes and incentives to invest.
Key Entities Referenced
Ministry of Electronics and Information Technology: The primary ministry responsible for policies related to electronics manufacturing.
Semicon India Program: Government initiative to develop the entire value chain of semiconductors.
Electronics Components Manufacturing Scheme (ECMS): Scheme aiming to develop manufacturing of key electronic components.
Design Linked Incentive Scheme: Financial support to design semiconductor chips for critical sectors.
Make in India: Referenced initiative to encourage local manufacturing.
GOVERNMENT OF INDIA
MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY
LOK SABHA
STARRED QUESTION NO. *65
TO BE ANSWERED ON: 04.02.2026
DOMESTIC MANUFACTURING OF CRITICAL ELECTRONIC COMPONENTS
*65. SHRI PRAVEEN KHANDELWAL:
Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:
(a) whether a national framework exists to promote domestic manufacturing of critical electronic
components beyond assembly; and
(b) if so, the details of steps taken to reduce strategic import dependence?
ANSWER
MINISTER OF ELECTRONICS AND INFORMATION TECHNOLOGY
(SHRI ASHWINI VAISHNAW)
(a) and (b): A Statement is laid on the Table of the House.STATEMENT REFERRED TO IN THE REPLY TO LOK SABHA STARRED QUESTION NO. *65
FOR 04.02.2026, REGARDING DOMESTIC MANUFACTURING OF CRITICAL ELECTRONIC
COMPONENTS
……….
(a) and (b): Government of India’s semiconductor strategy is based on Prime Minister’s vision of Make in India
and Atmanirbhar Bharat. This is a well thought out strategy to develop manufacturing from finished product
assembly, sub-assembly, components, chip design, fabrication, packaging etc.
Electronics manufacturing in India has expanded significantly in the last 11 years. It can be seen from the
following statistics:
# 2014-15 2024-25 Remarks
Production of electronics goods (Rs.) ~1.9 Lakh Cr ~11.3 Lakh Cr Increased 6 times
Export of electronics goods (Rs.) ~0.38 Lakh Cr ~3.3 Lakh Cr Increased 8 times
Production of mobile phones (Rs.) ~0.18 Lakh Cr ~5.5 Lakh Cr Increased 28 times
Export of mobile phones (Rs.) ~0.01 Lakh Cr ~ 2 Lakh Cr Increased 127 times
To further deepen the Value Chain, Government recently launched Electronics Components Manufacturing
Scheme (ECMS). The scheme aims to develop manufacturing of key components such as Printed Circuit Boards
(PCBs), passive components, electro-mechanical components, sub-assemblies, camera modules, optical
transceivers, and capital goods required for electronics manufacturing.
The ECMS has received unprecedented response from the industry so far. Against the initial investment target
of Rs. 59,350 crore, industry has submitted 249 proposals with total investment commitment of Rs. 1.15 lakh
crore. Encouraged by the response, ECMS outlay has also been increased from Rs. 22,900 Cr to Rs. 40,000 Cr.
in Budget 2026-27.
The approved applicants would manufacture a wide spectrum of electronic components such as aluminium
extrusion, anode material, camera modules, capacitors, connectors, display modules, enclosures for mobile and
IT hardware products and related devices, laminates, li-ion cells, optical transceivers, oscillators, PCBs (multi-
layer & HDI), and polypropylene film. These components are expected to be used across various sectors such as
consumer electronics, telecom, automotive electronics, strategic electronics, mobile phones, and IT hardware.
To develop semiconductor manufacturing and to further widen the supply chain ecosystem with respect to
manufacturing of active electronics component, Government of India launched Semicon India Program in 2022.
Government is focused on developing the entire value chain of semiconductors which includes - designing,
fabrication, assembly, testing and packaging.
• In less than 3 years, ten (10) units have been approved with cumulative investment of Rs 1.6 Lakh Crore.
These units include silicon fab, Silicon Carbide fab, advanced packaging, memory packaging, etc. These
would cater to chip requirements of sectors such as consumer appliances, industrial electronics,
automobiles, telecommunications, aerospace, and power electronics etc.
• For chip design, 24 projects have been approved under the Design Linked Incentive Scheme for financial
support to design semiconductor chips for critical sectors such as video surveillance, drone detection,energy metering, microprocessors, satellite communications, broadband technologies, and SoC for the
Internet of Things (IoT).
• Government is following a strategic path to provide free access of Design Infrastructure Support with
access to advanced chip design tools, intellectual property (IP) cores, multi-project wafer (MPW)
fabrication services, and prototyping facilities to academia, startups and MSMEs.
Union Budget for 2026-27 has also announced Semicon 2.0 to further expand semiconductor manufacturing
ecosystem.
******