In a major boost to Tamil Nadu’s electronics manufacturing sector, the state has secured five out of seven projects approved under the first round of the Union Government’s Electronics Component Manufacturing Scheme (ECMS), with total investments worth Rs 42.7 billion. The state now aims to attract around 30 per cent of the total investments under the scheme.

“Tamil Nadu is the top state in the first round of the Electronics Component Manufacturing Scheme of the Union Government, with five of the seven approved projects so far. In this round, Tamil Nadu leads with 77 per cent of total investments approved,” said State Industries Minister T R B Rajaa.

Out of the Rs 55.3 billion in investments cleared by the Centre, Tamil Nadu accounted for Rs 42.7 billion. Four of these projects belong to Mysuru-based Kaynes Circuits India, representing a combined investment of Rs 32.8 billion, while Bengaluru-based Ascent Circuits has committed Rs 9.9 billion.

“Even though the Union’s ECMS scheme had an initial investment target of Rs 593.5 billion, it has already received proposals worth over Rs 1 trillion. Eventually, we in Tamil Nadu hope to garner about 30 per cent of the investments under the scheme,” Rajaa added.

The remaining two projects cleared by the Centre include investments of Rs 4.96 billion by SRF in Madhya Pradesh and Rs 7.65 billion by Syrma Strategic Electronics in Andhra Pradesh.

“We were the first state to formulate a matching grants scheme for components manufacturing, and the results are here for everyone to see,” Rajaa said.

Strong industry response reflects national confidence

The ECMS, approved by the Cabinet on May 1 this year with a fiscal outlay of Rs 229.2 billion, has attracted 249 applications with an expected investment of Rs 1.15 trillion, nearly double its initial target of Rs 593.5 billion.

The estimated production of electronic components under the scheme over the next six years is projected at Rs 10.35 trillion, more than double the targeted Rs 4.56 trillion.

The initiative is expected to generate 142,000 direct jobs, surpassing the original goal of 91,600, along with a substantial number of indirect employment opportunities, highlighting its potential to stimulate large-scale job creation.

The application window, which opened on May 1, was later extended to September 30 due to the strong response from the industry.

India’s electronics manufacturing push gathers global momentum

According to the Union Government, the overwhelming response to the ECMS highlights India’s growing reputation as a global electronics hub and the confidence of domestic industries, including MSMEs, in supporting the country’s drive for self-reliance in electronics manufacturing.