ECMS aims to lift India’s mobile component localisation to 50% by FY32
India’s Electronics Components Manufacturing Scheme is shifting the focus from phone assembly to local components. With 106 projects approved and ₹69,548 crore in committed investment, the programme targets about 50% domestic mobile bill-of-materials coverage by FY32, up from below 20% today.
What happened
Electronics Components Manufacturing Scheme (ECMS) · India’s ECMS seeks to shift mobile manufacturing from assembly toward local components, targeting about 50%
Key facts
- 99% of mobile phones sold domestically are assembled in India
- Domestic mobile Bill of Materials value addition is below 20%
- ECMS targets around 50% domestic mobile BoM coverage by FY32
- ECMS outlay increased to Rs 40,000 crore from Rs 22,919 crore
- 106 projects approved
- Rs 69,548 crore committed investment
- Rs 5.34 lakh crore projected component production
- Rs 12.1 lakh crore electronics production in FY26
- PCBs have a $7 billion domestic addressable market
- 85-90% of PCB demand is imported
Why this matters
Corporate development teams should assess partnerships, acquisitions and supplier joint ventures in India’s mobile-component ecosystem, where 106 approved projects and ₹69,548 crore of commitments are accelerating local capacity.
What to watch
- Commissioning dates and production yields for the 106 approved ECMS projects, rather than committed-investment announcements.
- Actual domestic bill-of-materials share moving from below 20% toward interim milestones, particularly for displays, camera modules and batteries.
- OEM disclosures of India sourcing percentages, component qualification wins and reductions in imported subassemblies.
- Changes in handset average selling prices, retailer gross margins and inventory days in the ₹10,000-₹25,000 segment.
- Import-duty, production-linked incentive and trade-policy changes affecting components, subassemblies and finished smartphones.
- Service-center repair turnaround times and spare-parts pricing for locally produced models.
- Increase procurement and merchandising engagement with OEMs that have disclosed India-based component sourcing plans, especially in batteries, PCBs, cameras and enclosures.
- Build demand forecasts around more frequent mid-range handset refreshes rather than assuming localization immediately produces lower entry-level prices.
- Negotiate allocation, replenishment and promotional funding terms tied to locally sourced models, using improved OEM lead times as leverage.
- Expand attachment offers for accessories, protection plans, trade-ins and repair, as greater domestic parts availability can reduce service turnaround times.
- Monitor SKU concentration risk: prioritize brands with diversified local supplier bases rather than relying on a single incentive-backed component ecosystem.