The mobile manufacturing segment witnessed a nearly 30-fold increase in production value, rising from ₹18,000 crore in FY15 to ₹5.45 lakh crore in FY25. Representational image.
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Union Finance Minister Nirmala Sitharaman on Sunday (February 1, 2026) announced that the outlay for the Electronics Component Manufacturing Scheme (ECMS) would be increased from ₹22,805 crore to ₹40,000 crore. The outlay is being doubled even as the scheme “already has investment commitments at double the target,” and the near-doubling of the outlay will “capitalise on the momentum,” she said.
The ECMS’s application window is open until 2027 for just one category of goods: indigenously manufactured capital machinery to make components. The increased outlay is likely to benefit this category.
The ECMS, which provides a turnover-linked incentive payout to firms investing in component manufacturing, has already been approved for investments of over ₹1 lakh crore in 46 existing and greenfield manufacturing projects. Electronics manufacturing stocks reacted positively, rising 5–6% after the announcement.
Presenting the Union Budget for 2026-27, the Finance Minister said high-tech tool rooms will be established at two locations to give push to capital goods manufacturing.
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Ms. Sitharaman also proposed a scheme for container manufacturing to create globally competitive ecosystem.
Three dedicated chemical parks will also be set up to enhance domestic production, reduce import dependency, she added.
The move comes amid a massive thrust by the government on increasing electronics manufacturing in the country.
The mobile manufacturing segment witnessed a nearly 30-fold increase in production value, rising from ₹18,000 crore in FY15 to ₹5.45 lakh crore in FY25.
iPhone exports from India have hit ₹2.03 lakh crore in 2025, which is almost double that of ₹1.1 lakh crore Apple exported in the calendar year 2024.
Mobile phone production in the country is expected to reach about ₹6.76 lakh crore, comprising exports over $30 billion, or about ₹2.7 lakh crore, by the end of the current fiscal year.
As of August 2025, 10 semiconductor manufacturing and packaging projects have been approved in the country with a cumulative investment of around ₹1.6 lakh crore in six states.
Published – February 01, 2026 12:14 pm IST
