India’s latest approvals under the Electronics Component Manufacturing Scheme (ECMS) signal a shift beyond capacity creation, with growing implications for material control, traceability, and recovery within the electronics ecosystem.

At an industry event hosted by the India Cellular & Electronics Association (ICEA), Union Minister for Electronics & IT Ashwini Vaishnaw announced 29 additional approvals under the scheme’s fourth tranche, taking the total to 75. These are expected to attract investments of around ₹7,100 crore and generate nearly 14,000 jobs.

The latest approvals include a mix of domestic and global players such as Munoth Lithium Battery, Vishay Components, TDK India, VVDN Technologies, Molex India, Amphenol FCI, Syrma Strategic, Dixon Display, Lohum Cleantech, Titan Engineering, and O/E/N India.

More significantly, the scheme has expanded into upstream categories for the first time, including rare earth permanent magnets, flexible printed circuit boards (PCBs), and metallised films for capacitors. These components sit at the heart of electronics manufacturing—and increasingly, at the centre of recycling challenges.

By localising component production, India could improve visibility over material flows—an essential step for strengthening traceability and enabling more efficient recovery of high-value materials embedded in electronic products.

India’s electronics growth has so far been driven largely by assembly, with limited control over component-level value. This has also meant weaker linkages between manufacturing and end-of-life recovery, often resulting in inefficient material extraction and continued reliance on imports.

The ECMS begins to address that gap. The inclusion of players such as Lohum Cleantech points to early convergence between manufacturing and recycling ecosystems. However, the extent to which this translates into circular outcomes will depend on how closely production is aligned with design-for-recycling principles and Extended Producer Responsibility (EPR) frameworks.

Speaking at the event, Vaishnaw said, “India is decisively moving up the electronics value chain. With ECMS, we are not just expanding manufacturing, we are building core component capabilities that will define global competitiveness.”

S. Krishnan, Secretary, MeitY, added, “ECMS is driving a structural transformation in India’s electronics ecosystem… enabling higher domestic value addition and building a future-ready, resilient manufacturing base.”

ICEA Chairman Pankaj Mohindroo said, “A calibrated reopening of the scheme will be important to further build critical component capabilities and deepen domestic value addition.”

As India pushes towards becoming a $500 billion electronics manufacturing hub, the next phase will hinge on linking production with recovery. A more localised, component-driven ecosystem could improve material circularity—but only if supported by robust design standards, traceability systems, and formal recycling infrastructure.