Make in India and the rise of electronics component manufacturing
India’s electronics sector has entered a new phase. Policy now reaches deeper, into the components, circuit boards and semiconductors that products are made from.
The policies driving the change
For years the emphasis was on assembling finished products. For anyone who buys or sells electronic components in India, the shift towards components matters.
| Policy | What it sets out to do |
|---|---|
| National Policy on Electronics 2019 | Positions India as a global hub for Electronics System Design and Manufacturing (ESDM) and stresses core component capability. |
| Electronics Component Manufacturing Scheme (ECMS) | Approved in March 2025 and notified in April 2025. Aims to build a strong component ecosystem, attract investment and link Indian companies with global value chains. |
| India Semiconductor Mission | Supports semiconductor fabs, display fabs, compound semiconductors, sensors, packaging and chip design. |
| Design Linked Incentive scheme | Supports semiconductor design for ICs, chipsets, SoCs, systems and IP cores. |
| Public Procurement (Preference to Make in India) Order, 2017 | Gives preference to qualifying local suppliers in applicable government purchases. |
What the component scheme covers
The ECMS names the segments India wants to manufacture at home:
- Sub-assemblies, including telecom optical transceivers
- SMD and non-SMD passive components
- Electromechanical components
- Multi-layer, HDI, MSAP and flexible PCBs
- Li-ion cells for digital applications
- Enclosures
- Supply-chain components and capital equipment
Why this matters to component buyers
- A new electronics factory needs a steady flow of semiconductors, passives, PCBs, connectors, RF parts, sensors and cable assemblies
- As manufacturing expands, so does the demand for suppliers who can deliver reliably
- Some supply will come from new Indian plants
- Much of it, particularly in specialised technologies, will continue to come from established global manufacturers
Public procurement and local content
Under the Make in India procurement framework, a Class-I local supplier generally offers goods with 50% or more local content, and a Class-II local supplier offers more than 20% but less than 50%. A nodal ministry may set a different threshold for a particular item.
Local-content status belongs to a product in a specific procurement. It cannot be claimed simply because a supplier is located in India. Buyers and bidders should always check the tender conditions and the notification that applies.
Where AEPL fits
Many of our customers work in sectors tied to government and strategic procurement, so we follow these developments closely. Our role is to connect Indian OEMs and engineering organisations with the right technology, whether it is made in India or sourced from a global manufacturer, and to be clear about which is which.
As India’s component industry grows, we are widening our manufacturer network and building knowledge in the technology segments Indian industry will need next.
This page is provided for general industry context only. Eligibility, incentives and procurement preferences depend on the applicable scheme, product, tender and current regulations. Please refer to the relevant Government notification before relying on any provision.
Talk to us about your requirement
Tell us what you are building and the components you need.