India electronics manufacturing expansion

The Indian government is expanding its domestic electronics manufacturing capabilities through large-scale infrastructure projects and component manufacturing schemes.

In early August 2026, the government approved an Electronics Manufacturing Cluster (EMC 2.0) in the Rajnandgaon district of Chhattisgarh. This project, estimated to cost Rs 432.08 crore, aims to attract over Rs 3,000 crore in investment and create approximately 9,000 jobs. The cluster is designed to provide factory spaces and utilities for companies in the semiconductor, electric-vehicle, and smart-electronics sectors.

By mid-August, the Ministry of Electronics and Information Technology reported significant progress under the Electronics Components Manufacturing Scheme (ECMS). Following the approval of 31 new projects, the total number of approved applications reached 106 across 15 states, with cumulative investment hitting Rs 69,548 crore. These initiatives are expected to generate 75,000 direct jobs and a total production value of approximately Rs 5,34,101 crore.

Union Minister Ashwini Vaishnaw noted that the industry is transitioning from simple assembly to the production of sophisticated components and raw materials. India has achieved 100% self-reliance in categories such as enclosures, relays, and optical transceivers, and has begun exporting printed circuit boards to China. Domestic capability has also reached 60% for lithium-ion cells and 80% for laminates.

To further bolster the chip ecosystem, Prime Minister Narendra Modi is scheduled to inaugurate SEMICON India 2026 in New Delhi. Meanwhile, states like Odisha are increasing subsidies to 35% to attract specialized manufacturing, such as outsourced semiconductor assembly and testing (OSAT) and advanced packaging.