New Delhi: In a major boost to India’s electronics manufacturing sector, the Ministry of Electronics and Information Technology (MeitY) has approved seven new private investments focused on the production of electronic components in Tamil Nadu, Andhra Pradesh, and Madhya Pradesh. The move is expected to accelerate India’s vision of becoming a global hub for electronics production under the government’s Make in India and Digital India initiatives.
Big Push for India’s Electronics Ecosystem
The Indian government has been aggressively pushing domestic manufacturing to reduce import dependency on China and other countries. The approval of these seven projects marks a significant milestone under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), which provides financial incentives for companies setting up units in India.
Officials from MeitY confirmed that the total investment value across these seven proposals stands at over ₹4,000 crore, with the projects expected to generate more than 6,000 direct jobs and thousands of indirect employment opportunities.
States Taking the Lead: Tamil Nadu, Andhra Pradesh, and Madhya Pradesh
The selected states — Tamil Nadu (T.N.), Andhra Pradesh (A.P.), and Madhya Pradesh (M.P.) have emerged as top destinations for electronics manufacturing due to their industrial infrastructure, skilled workforce, and proactive state policies.
- Tamil Nadu, already home to major global electronics manufacturers like Foxconn and Pegatron, will host three of the seven new investments.
- Andhra Pradesh will see two projects, particularly in the electronic component and assembly segment.
- Madhya Pradesh, which has been improving its industrial infrastructure in recent years, will receive two units, focusing on component testing and semiconductor sub-assembly.
Government’s Strategic Vision for Component Independence
According to senior officials, the government’s main goal is to strengthen the electronic components supply chain within India. Despite rapid progress in smartphone assembly and consumer electronics manufacturing, India still imports a large share of critical components like semiconductors, PCBs, sensors, and connectors.
“These approvals are aimed at filling the missing links in our electronics ecosystem. By encouraging private players to set up component and sub-assembly units, we aim to cut down import dependency and boost local value addition,” said a MeitY spokesperson.
Who Are the Approved Companies?
While official names have not been publicly disclosed yet, industry insiders reveal that some of the approved companies include domestic startups as well as joint ventures with international partners. These ventures will focus on key component areas such as:
- Printed Circuit Boards (PCBs)
- Display modules
- Camera sensors
- Power management systems
- Passive electronic components
Sources suggest that at least two of the Tamil Nadu projects are linked to major smartphone component suppliers, while one of the Andhra Pradesh units will cater to automotive electronics a rapidly growing segment with India’s EV expansion.
Financial Incentives and Policy Support
The projects have been cleared under MeitY’s incentive-based schemes such as:
- SPECS (Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors) – Offers a 25% financial incentive on capital expenditure.
- PLI (Production Linked Incentive) Scheme – Rewards incremental production and sales.
- EMC 2.0 (Electronics Manufacturing Clusters) – Focuses on infrastructure support and plug-and-play facilities.
Industry analysts note that these combined schemes have made India one of the most attractive global destinations for electronics manufacturing investments.
Boost for Local Economies
Local officials from Tamil Nadu, Andhra Pradesh, and Madhya Pradesh have welcomed MeitY’s decision, calling it a “transformative opportunity” for regional economies.
Tamil Nadu’s Industries Minister said,
“Our state has always been a leader in manufacturing, and this new wave of investments reaffirms Tamil Nadu’s position as India’s electronics capital.”
Similarly, the Andhra Pradesh government said the move will help boost employment in Visakhapatnam and Sri City, where infrastructure for electronics parks already exists. Madhya Pradesh officials noted that the projects will help establish the state as a “new player” in the electronics supply chain.
Job Creation and Skill Development
According to government estimates, the combined investments could create over 6,000 direct jobs across the three states. MeitY also plans to collaborate with state skill development missions to train local youth in component assembly, testing, and quality control.
Industry experts believe that the focus on smaller component manufacturing will not only generate employment but also create a ripple effect in MSME and supplier networks.
“Each major electronics plant supports hundreds of smaller suppliers and logistics partners. These approvals will have a multiplier effect on India’s manufacturing economy,” said Rajeev Khanna, an industry analyst.
Strengthening India’s Semiconductor Ambitions
While these new investments do not directly involve semiconductor wafer fabrication (fabs), they align with India’s larger ambition to build a self-reliant semiconductor ecosystem.
Earlier this year, the government approved Micron Technology’s assembly and testing facility in Gujarat, and multiple proposals are under review for chip fabrication plants.
By supporting component manufacturers now, the government hopes to create a strong foundation for future semiconductor growth and attract global chip suppliers to set up in India.
Industry Reactions
Industry bodies like ELCINA (Electronic Industries Association of India) and MAIT (Manufacturers’ Association for Information Technology) have praised the government’s decision.
ELCINA President stated:
“The approval of these seven projects underlines the government’s commitment to building a sustainable, long-term manufacturing base. It will help India move from an assembly economy to a true design and component nation.”
Global investors are also watching closely. India’s stable policies, improved ease of doing business, and rising domestic demand are attracting electronics firms looking to diversify beyond China and Vietnam.
Challenges Ahead
Despite the positive news, experts caution that infrastructure and logistics challenges must be addressed to maintain momentum. Issues like power reliability, component testing standards, and global supply chain volatility could impact progress if not managed effectively.
However, the government has expressed confidence that with upcoming industrial corridors, digital infrastructure, and faster approval systems, these bottlenecks will soon be resolved.
The Road Ahead
The approval of these seven projects marks another chapter in India’s growing dominance in global electronics manufacturing. With rising exports of smartphones, wearables, and consumer devices, the next logical step is self-sufficiency in electronic components.
The government’s roadmap includes expanding manufacturing clusters, attracting FDI, and fostering collaboration between academia and industry for R&D.
Conclusion
The IT Ministry’s move to approve seven private investments in Tamil Nadu, Andhra Pradesh, and Madhya Pradesh demonstrates a clear commitment to shaping India’s technological future. With strong government backing, private sector participation, and growing global confidence, India is inching closer to its goal of becoming a world leader in electronics manufacturing and innovation.
As these projects take off over the coming months, India’s digital infrastructure and industrial ecosystem will likely see a new wave of growth, jobs, and innovation, solidifying the country’s place in the global tech economy.
