India’s Electronics Component Manufacturing Scheme (ECMS) has green lighted the setting up of 31 new projects with a proposed investment of Rs 7,877 crore – taking it one step closer to increasing India’s footprint in electronic goods production and cutting import dependence. New sanctions reported on August 17, 2026. The new proposals are expected to drive production worth over Rs 82,243 crore and create nearly 10,000 direct jobs spread across ten Indian states.
The development is extremely beneficial to India’s defence electronics ecosystem. This includes the defence, radar, avionics, surveillance, electronic warfare, communications and unmanned systems sectors where indigenous and secure supply of components would add to the robustness of their systems.
The latest projects cover a broad range of components, including capital goods, camera and display modules, connectors, anode materials, enclosures, antennas, rare-earth permanent magnets, speakers and microphones, and metallised films for capacitors and coils. These components can support multiple high-technology industries, including defence, telecommunications, automotive, industrial electronics and aerospace.
The recently issued approvals for ECMS can hence be viewed both as a defence electronics manufacturing policy as well as a nascent strategic industry-capacity development program. With rising India defence production and exports, a deeper electronics supply chain would help India realise its ambitions of becoming a manufacturing and innovation hub by design.

