**Executive Summary**
This document provides the answer to Unstarred Question No. 1680 in the Lok Sabha, addressing the launch of ARKA-GKT1 and approvals granted under the Electronics Components Manufacturing Scheme (ECMS). The response, delivered by the Minister of State for Electronics and Information Technology on December 10, 2025, details investments, locations, and components covered under ECMS.
**Key Points / Main Content**
* **Government Strategy:** The Government's policies, driven by "Make in India" and "Atmanirbhar Bharat" visions, aim to build a complete electronics ecosystem.
* **Electronics Manufacturing Growth:** There has been significant expansion of electronics manufacturing in India over the last 11 years with increased value addition.
* **Production and Export Statistics (Approximate Values):**
* Production of electronics goods increased from ₹1.9 Lakh Cr (2014-15) to ₹11.3 Lakh Cr (2024-25).
* Export of electronics goods increased from ₹0.38 Lakh Cr (2014-15) to ₹3.3 Lakh Cr (2024-25).
* Production of mobile phones increased from ₹0.18 Lakh Cr to ₹5.5 Lakh Cr
* Export of mobile phones increased from ₹0.01 Lakh Cr to ₹2 Lakh Cr
* **Initiatives Undertaken:**
* Production Linked Incentives (PLI) for large-scale electronics and IT hardware.
* Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS).
* Electronics Manufacturing Clusters (EMC and EMC 2.0).
* Public Procurement Order 2017 to prioritize domestic manufacturing.
* Taxation reforms and rationalization of tariffs.
* 100% FDI allowed in electronics manufacturing.
* **Electronics Components Manufacturing Scheme (ECMS):**
* Launched to deepen electronics manufacturing, promoting components like resistors, capacitors, inductors, PCBs, etc.
* 24 applications approved, with 17 in the second tranche.
* These 17 applications project investments of ₹7,172 crores, production of ₹65,111 crores, and 11,808 direct employments.
* Located across 9 States.
* Five applications approved in Karnataka.
* **Approved Electronic Components:**
* Multi-layer PCB
* Camera module
* Connectors
* Oscillators
* Optical transceivers
* Enclosures for mobile, IT hardware products, and related devices.
* **Sectors Served:** Consumer electronics, telecom, auto electronics, IT hardware.
* **ARKA GKT-1:** System-on-Chip (SoC) developed jointly by M/s Cyient Semiconductor and M/s Azimuth AI with advanced edge-compute features.
* **Applications of ARKA GKT-1:** Smart electricity meters, smart grids, precision metering, and IoT infrastructure.
* **Karnataka Applications (Annexure I):**
* Aequs Consumer Products Private Limited: Enclosures for Mobile, IT Hardware products and related devices
* Rakon India Private Limited: Electro-mechanicals - Oscillators
* Micropack Private Limited: Multi-Layer PCB
* AT & S India Private Limited: Multi-Layer PCB
* Ehoome IOT Private Limited: Multi-Layer PCB
**Impact Analysis**
**Stakeholder: Electronics Manufacturers in India**
* **Impact:** Benefit from increased investments, incentives, and a supportive ecosystem for manufacturing electronic components and finished goods.
* **Action Required:** Leverage the government's schemes (PLI, SPECS, EMC), and initiatives to expand operations, increase production, and enhance competitiveness.
**Stakeholder: States hosting Electronics Manufacturing Units**
* **Impact:** Potential for increased economic activity, employment generation, and regional development.
* **Action Required:** Support the establishment and operation of electronics manufacturing units in their respective states, facilitating infrastructure development and skill enhancement programs.
**Stakeholder: Consumers of Electronic Goods**
* **Impact:** Access to a wider range of domestically manufactured electronic products, potentially at competitive prices.
* **Action Required:** Support the purchase of domestically manufactured electronic goods to further stimulate the growth of the Indian electronics manufacturing industry.
Key Entities Referenced
Electronics Components Manufacturing Scheme (ECMS): A scheme to deepen electronics manufacturing by promoting the production of components such as resistors, capacitors, inductors, printed circuit boards, sub-assemblies, and electro-mechanicals.
ARKA GKT-1: India's first generation energy-efficient edge silicon chip; a System-on-Chip (SoC) developed jointly by M/s Cyient Semiconductor and M/s Azimuth AI that supports advanced edge-compute features for applications like smart electricity meters.
Make in India: Government of India initiative aimed at encouraging companies to manufacture their products in India.
Karnataka: A state in India where 5 applications have been approved under the ECMS scheme for electronic component manufacturing.
Ministry of Electronics and Information Technology: The primary government entity responsible for the policy in question.
GOVERNMENT OF INDIA
MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY
LOK SABHA
UNSTARRED QUESTION NO. 1680
TO BE ANSWERED ON: 10.12.2025
LAUNCH OF ARKA-GKT1
1680. DR. HEMANT VISHNU SAVARA:
SHRI CAPTAIN BRIJESH CHOWTA:
SHRI LAVU SRI KRISHNA DEVARAYALU:
SHRI JASHUBHAI BHILUBHAI RATHVA:
SHRI P P CHAUDHARY:
SHRI ALOK SHARMA:
DR. HEMANG JOSHI:
Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:
(a) the approvals granted under the second tranche of the Electronics Components Manufacturing Scheme
(ECMS) including the total proposed investment and projected production values;
(b) the details of the States in which the newly approved units are located and the extent to which the scheme
supports balanced regional growth and high-skill employment generation;
(c) whether any such units have been approved or proposed for the State of Rajasthan and coastal Karnataka
particularly Dakshina Karnataka and if so, the details thereof;
(d) the categories of electronic components and sub-assemblies covered under the latest approvals and the key
sectors expected to be served by these projects; and
(e) the details of the launch of India’s first generation energy-efficient edge silicon chip ARKAGKT1?
ANSWER
MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY
(SHRI JITIN PRASADA)
(a) to (e): The policies of Government of India is driven by Hon’ble Prime Minister’s vision of Make in India and
Atmanirbhar Bharat. It aims building a complete ecosystem for electronics sector.
We started our electronics journey with manufacturing finished products in the country and then started to focus on
developing modules. The focus is now on developing the sub-modules/components and further raw materials, tools
and machineries that go into manufacturing it.
Electronics manufacturing in India has expanded significantly in the last 11 years. Value addition by the electronics
manufacturing units in India has also increased considerably in recent years. It can be seen from the following
statistics:
# 2014-15 2024-25 Remarks
Production of electronics goods (₹) ~1.9 Lakh Cr ~11.3 Lakh Cr Increased 6 times
Export of electronics goods (₹) ~0.38 Lakh Cr ~3.3 Lakh Cr Increased 8 timesProduction of mobile phones (₹) ~0.18 Lakh Cr ~5.5 Lakh Cr Increased 28 times
Export of mobile phones (₹) ~0.01 Lakh Cr ~ 2 Lakh Cr Increased 127 times
This transformation was made possible by the Government's electronics manufacturing strategy. Many initiatives
have been undertaken in last 11 years. These include:
• Production linked incentives (PLI) for large scale electronics manufacturing
• Production linked incentives (PLI) for IT hardware
• Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
• Electronics Manufacturing Clusters (EMC and EMC 2.0) Scheme
• Public Procurement (Preference to Make in India) Order 2017 to prioritize domestically manufactured
products in public procurement
• Reforms in taxation including rationalization of tariff structure, exemption on basic custom duty on capital
goods, etc.
• Allowing 100% FDI in electronics manufacturing, subject to applicable laws / regulations
Electronics Components Manufacturing Scheme (ECMS).
To further deepen electronics manufacturing, Government launched ECMS. It promotes manufacturing of
components such as resistors, capacitors, inductors, printed circuit boards, sub-assemblies, electro-mechanicals,
etc.
The scheme has received unprecedented response from the industry sor far. Applications for projects having
investment value of INR 1.15 lakh crores against the target investment of INR 59,350 crores have been received.
Government has approved 24 applications so far under this scheme, out of which 17 applications have been
approved in 2nd tranche.
These 17 applications have projected investment of INR 7,172 crores, production of INR 65,111 crores and
generation of 11,808 direct employments.
The manufacturing units of these 17 applications are located across 9 States which highlights wide and diverse
participation of States across the country in electronic components manufacturing.
Out of these 17 approved applications, five (05) applications have been approved for electronic component
manufacturing in Karnataka. The details of the same are annexed.
These approved applicants would manufacture a wide spectrum of electronic components such as multi-layer PCB,
camera module, connectors, oscillators, optical transceivers and enclosures for mobile, IT hardware products and
related devices. These are expected to be used across various sectors like consumer electronics, telecom, auto
electronics and IT hardware etc.
The ARKA GKT-1 is a System-on-Chip (SoC) jointly developed by M/s Cyient Semiconductor and M/s Azimuth
AI. This SoC supports advanced edge-compute features with potential applications in smart electricity meters
enabling smart grids, precision metering and IoT (Internet of Things) infrastructure.
The development of this SoC showcases maturing of India’s industry and shift towards a product-driven and high-
performance semiconductor ecosystem.
*****Annexure I
List of applications approved for state of Karnataka.
S.No. Applicant Name Product
1. Aequs Consumer Products Private Enclosures for Mobile, IT Hardware products and related devices
Limited
2. Rakon India Private Limited Electro-mechanicals - Oscillators
3. Micropack Private Limited Multi-Layer PCB
4. 4. AT & S India Private Limited Multi-Layer PCB
5. 5. Ehoome IOT Private Limited Multi-Layer PCB
*****