In a move aimed at strengthening India’s electronics ecosystem, the government is considering new requirements for companies under the Electronic Component Manufacturing Scheme (ECMS) to invest in design capabilities.
Officials said companies participating in the scheme may soon be required to commit a minimum level of investment in design-related work. This includes clearly stating how much design talent they plan to hire as part of their overall workforce, along with investments to build these capabilities during the project construction phase and for 2 years after.
The push comes as many firms in India’s electronics sector currently focus mainly on assembling products rather than developing them. The government now wants these companies to move into higher-value design activities.
The initiative gained momentum about a month ago when electronics and IT minister Ashwini Vaishnaw warned that companies not investing in design capabilities could be removed from the scheme. He also indicated that disbursals under the ₹40,000 crore ECMS could be stopped by revising the guidelines.
The proposed rules are expected to ensure that companies go beyond manufacturing and actively contribute to innovation and product development within India.
Authorities believe this shift will help build a stronger domestic electronics industry by promoting local design expertise alongside production.
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