In a major move to solidify India’s position in the global electronics value chain, the Ministry of Electronics and Information Technology (MeitY) has greenlit the third tranche of the Electronics Component Manufacturing Scheme (ECMS).
On January 2, 2026 IT Minister Ashwini Vaishnaw announced the approval of 22 new projects, representing a massive combined investment of ₹41,863 crore. This latest wave of approvals is expected to drive production worth ₹2.58 lakh crore and create over 33,700 direct jobs.
Why This Matters: Moving from Assembly to Anatomy
For years, India’s electronics success was defined by “last-mile assembly”—putting together parts made elsewhere. The ECMS shifts the focus to the “anatomy” of the device. By incentivizing the production of bare components and sub-assemblies, the government is tackling the high cost of imports and building a self-sustaining ecosystem.4
- Strategic Independence: Reducing reliance on imports for critical parts like PCBs and Lithium-ion cells—where India has traditionally been vulnerable to global supply shocks.5
- The “Race” for Payouts: Unlike standard subsidies, ECMS payouts are performance-linked.6 The “race” format encourages firms to hit their production roadmaps early, accelerating the speed at which “Made in India” components hit the market.
The Heavyweights and the High-Tech Segments
The 22 approved projects span 11 critical technology domains, ranging from mobile enclosures to complex satellite transceivers.7
- Key Players: The list includes global leaders like Samsung Display Noida (display modules) and Foxconn (via Yuzhan Technology for enclosures), alongside domestic giants like Tata Electronics and Dixon Technologies.8
- PCB Powerhouse: Nine applicants were approved specifically for Printed Circuit Boards (PCBs), the “nervous system” of all electronics.9
- Geographic Spread: Projects are distributed across 8 states—including Tamil Nadu, Uttar Pradesh, and Karnataka—ensuring that the industrial boom isn’t confined to a single region.10
The Quality Mandate: Six Sigma or Bust
A standout moment of the announcement was Minister Vaishnaw’s call for the industry to adopt “Six Sigma” quality standards.11
- What is Six Sigma? It is a disciplined, data-driven methodology for eliminating defects in any process—from manufacturing to transactional.12 To be “Six Sigma,” a process must not produce more than 3.4 defects per million opportunities.
- The Goal: By pushing for this standard, the government is signaling that “Made in India” must become synonymous with “World Class Quality.” —
ECMS Tranche 3: Snapshot of Impact
| Metric | Tranche 3 Figure (Jan 2026) | Cumulative (All Phases) |
| Approved Projects | 22 | 46 |
| Projected Investment | ₹41,863 Crore | ~₹54,567 Crore |
| Direct Employment | 33,791 | ~51,000 |
| Key States | 8 (TN, UP, KA, AP, etc.) | 11 |
| Primary Focus13 | PCBs, Display, Li-ion, Enclosures14 | Full Ecosystem15 |
Minister’s Nudge: “Our ability to control our supply chain will determine our resilience… Nothing less than Six Sigma will be acceptable.” — Ashwini Vaishnaw