It has been indicated that the government has sanctioned the second round of projects under the Electronics Component Manufacturing Scheme (ECMS) to enhance domestic production of electronic products and key components in India. On Monday, the Ministry of Electronics and Information Technology (MeitY) approved 17 new projects that have an aggregate investment commitment of 7172 crore.
This is in addition to the first tranche that was announced on October 27 that contained seven projects worth 5,532 crore. The government currently approved 24 out of 249 proposals with the latest additions, to reach a total of 12,704 crore of investments. The ECMS has a vision of drawing up to 1.15 lakh crore in total and it is one of the most ambitious projects in the country towards increasing the production of electronics.
The new projects, which have been passed by the authorities, will create manufacturing bases in nine states and union territories. The biggest portion with 5 projects will be Karnataka, then Tamil Nadu and Maharashtra with 3 each. Each of them will have one project in Jammu, Uttar Pradesh, Madhya Pradesh, Gujarat, Andhra Pradesh and Goa. Such a wide geographic spread indicates the intention by the government to establish an electronics ecosystem throughout the nation to accommodate both large and small manufacturers.
In an address at one of the events held by the India Cellular and Electronics Association (ICEA) in New Delhi, IT minister Ashwini Vaishnaw added that initial fears that India was incapable of becoming a strong electronics industry had been proved wrong. He attributed the contribution of the players in the industry towards the continued progress of the country towards being a major global manufacturing hub.
Vaishnaw stated that in the gradual strategy that the government implemented, starting with the assembly of large numbers to create domestic demand and then push to manufacture more components were important in influencing the ECMS. The scheme would minimize the reliance on imports, boost the value addition in the country and improve the placement of India in the global supply chains by concentrating on major elements that are vital to the long-run expansion.
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