Stocks Of Electronics Manufacturers Rise Up To 2% As Govt Clears 31 Projects Worth ₹7,877 Crore Under Component Scheme
· Free Press Journal
Shares of electronics manufacturing companies gained on August 18 after the government approved 31 fresh projects worth Rs 7,877 crore under the Electronics Component Manufacturing Scheme (ECMS).
The latest approvals take the total number of sanctioned projects to 106 across five tranches, with cumulative investments crossing Rs 69,000 crore.
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The announcement boosted investor interest in the sector, with Syrma SGS and Dixon Technologies rising around 2% each. PCBL and Jyoti CNC also gained about 1%.
Union Electronics and IT Minister Ashwini Vaishnaw said the scheme has already surpassed its original investment target. The government had initially aimed to attract Rs 59,000 crore through the programme, but approved projects have now taken committed investments to Rs 69,000 crore.
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According to Electronics and IT Secretary S Krishnan, the latest approvals cover a broad range of products, including camera and display modules, connectors, anode materials, enclosures, rare earth permanent magnets, speakers, microphones, antennas, capacitor films, coils and capital goods.
Among the companies receiving approvals are Jyoti CNC Automation, Micromax Precision Moulding, VVDN Technologies, SkyQuad Electronics and Appliances, Mitsubishi Electric India, Wipro Global Engineering and Electronic Materials, Gruner India and Centum Electronics.
Other approved applicants include GX Group, Bhagwati Products, Ennovi Mobility Solutions, Syrma SGS Technology, Rosenberger Interconnect and Sensata Technologies.
The latest investments are expected to generate production worth Rs 82,243 crore and create nearly 10,000 jobs, according to Vaishnaw.
Government Pushes Domestic Supply Chains
The new investments are spread across 10 states and are aimed at increasing domestic value addition while reducing India's reliance on imported components.
Wipro Global is expanding its investment in copper-clad laminate, a component facing supply shortages and higher prices amid increasing demand from artificial intelligence servers. Quantum Magnetics has received approval to manufacture rare earth permanent magnets, a strategically important segment currently dominated by China.
Several companies, including Mitsubishi Electric, VVDN Technologies and Jyoti CNC Automation, have also received approvals for capital goods manufacturing, supporting efforts to build domestic production capabilities.
Vaishnaw said the electronics industry needs to focus on design capabilities, indigenous supply chains, Six Sigma quality and workforce development to remain globally competitive.
The minister also urged companies to develop “Swadeshi” supply chains by identifying locally produced components and sub-components. According to him, stronger domestic sourcing can create jobs, improve supply-chain resilience and support long-term growth in India's electronics manufacturing industry.