India to build chips, magnets, PCBs under Rs 61,671 Crore plan

In a bold move to enhance the global footprint of India's electronics industry, Union IT Minister Ashwini Vaishnaw unveiled an ambitious plan on March 30, approving 75 key projects under the Electronic Components and MSME (ECMS) program. This initiative, backed by a substantial investment of Rs 61,671 crore, is projected to generate around 65,000 direct jobs across the nation. Vaishnaw emphasized the significance of this initiative during a press conference, stating, "We began with the manufacturing of completed products and have progressively moved towards modules and sub-modules, now focusing on the essential components themselves." He underscored the shift in India's manufacturing paradigm, as the country transitions from merely assembling devices to producing the critical components that drive them. The plan includes the establishment of a unit dedicated to rare-earth permanent magnets, alongside the domestic production of high-end flexible Printed Circuit Boards (PCBs), which are vital for modern electronics. Vaishnaw proudly declared, "The remarkable aspect is that the entire technology involved is Indian-made." Additionally, six applications for the manufacturing of capital equipment and essential components such as inductors and transducers for the electric vehicle sector will now be produced domestically, reducing reliance on imports. "Previously imported, these components will now be manufactured locally," he noted, aiming to minimize India's dependency on Chinese supply chains and bolster the country’s clean energy and defense sectors. Vaishnaw projected that the new approvals would satisfy approximately 61% of the domestic demand for capacitors, a significant increase from the previous 35%. Furthermore, the country will achieve 100% self-sufficiency in relay manufacturing, with additional capacity available for export. The local production of rare earth magnets is expected to fulfill 25% of domestic needs, while metalized films for capacitor manufacturing will cover 44% of the market. PCBs will account for about 50% of local demand, with inductors and SMD passive components meeting 5% and 2%, respectively. "This is a systematic, step-by-step approach that positions us to not only reduce imports but also to become exporters," Vaishnaw explained. He also highlighted the rapid progress of Micron's second manufacturing plant, which is set to officially open on March 31, just 19 months after the first plant's inauguration on February 10. This swift transition from planning to production underscores India's manufacturing capabilities and the government's dedication to executing such transformative projects efficiently.