Why is local manufacturing of these components important?

Local production reduces reliance on imports, supports jobs and skills development, enhances supply chain resilience, and can lead to cost improvements for electronic products.

What incentives does the scheme offer?

The scheme provides capital subsidies, production-linked incentives, and support for infrastructure and technology investments to encourage new manufacturing units and upgrades.

India Expands PCB, Li-ion Cell and Display Module Manufacturing with New Incentives

India is taking decisive steps to strengthen its electronics supply chain by expanding manufacturing of printed circuit boards (PCBs), lithium-ion battery cells, and display modules under the country’s Electronics Component Manufacturing Scheme (ECMS). This move aims to make India a more self-reliant hub for core components that power smartphones, laptops, EV batteries and other high-growth tech sectors.

The expanded incentives are designed to attract investment, reduce dependency on imports, and drive long-term industrial growth.

Why This Matters

India’s electronics sector has grown rapidly over the past decade, but the country has traditionally relied on imports for critical components like PCBs, advanced display modules, and battery cells. By offering financial support and policy clarity through the ECMS, the government intends to:

Reduce import dependence
Boost local manufacturing capabilities
Create skilled jobs
Enhance competitiveness for Indian suppliers
Support the electric vehicle and consumer electronics markets

These areas are vital because they represent core building blocks of modern electronics and EV power systems.

Key Components Targeted

1. Printed Circuit Boards (PCBs)

PCBs form the backbone of electronic systems, providing the physical and electrical connections that allow chips and modules to operate. Strengthening PCB manufacturing locally will help producers of everything from smartphones to industrial electronics.

2. Lithium-Ion Battery Cells

With demand surging for electric vehicles, energy storage systems, and portable devices, local production of Li-ion cells helps reduce reliance on overseas suppliers and offers potential cost advantages for domestic OEMs.

3. Display Modules

Advanced displays — including OLED and high-refresh-rate panels — are central to premium phones, tablets and laptops. Developing local display module capacity gives India a stronger foothold in the global electronics value chain.

What the Scheme Offers

The Electronics Component Manufacturing Scheme expands the earlier incentive framework to cover more high-value components. It provides:

Capital subsidies and production linked incentives (PLIs)
Support for setting up new units and upgrading existing facilities
Encouragement for technology partnerships and infrastructure investments
Competitive incentives to make India attractive for global manufacturers

This package is aimed at lowering entry barriers and making large investments viable for both domestic and multinational companies.

Impact on Jobs and Supply Chain

By nurturing component manufacturing within India:

Skilled employment can grow in engineering, quality assurance, R&D and advanced production.
Backward linkages to smaller suppliers and sub-component makers will strengthen.
Local innovation may increase as factories align with manufacturing excellence and domestic demand.

This can help India transition from assembly-centric electronics production toward higher-value manufacturing roles.

What This Means for Consumers

In the medium to long term, expanded local production could:

Reduce costs for consumer electronics
Improve lead times and supply reliability
Support competitive pricing in EV batteries
Increase resilience in global disruptions

For smartphone buyers, EV owners and tech ecosystem players, this shift is a strategic win.