India is expanding its electronics manufacturing ecosystem with a stronger focus on creating more value within the country. As part of the broader Semicon 2.0 push, the government is targeting 40% domestic value addition through multiple manufacturing and semiconductor initiatives.
S Krishnan, Secretary at the Ministry of Electronics and Information Technology (MeitY), said the Electronics Component Manufacturing Scheme (ECMS) is helping strengthen India’s electronics value chain.
The government aims to reach the 40% target through the combined impact of the India Semiconductor Mission (ISM), mobile manufacturing, the Production Linked Incentive (PLI) scheme for electronics hardware and ECMS. The push comes as demand for memory continues to rise, partly due to growing AI workloads.
Micron CEO Sanjay Mehrotra said the company’s facility in Sanand, Gujarat, has started commercial production. Finished DRAM and NAND products are now being shipped to customers worldwide.
Micron’s latest filing also highlights the pressure in the memory market. DRAM average selling prices increased by about 140% and NAND prices rose by around 130% during the first 9 months of 2026 compared with the same period in 2025.
ECMS strengthens India’s electronics value chain
Krishnan said ECMS is helping deepen electronics manufacturing in India by increasing not only production but also the amount of value created domestically.
With the sector expanding, India could move beyond a component-focused manufacturing model and develop a broader electronics ecosystem. This could also increase the share of value generated within the country.
India’s value addition in electronics manufacturing has already increased to nearly 22% to 23%, compared with around 12% to 15% earlier.
40% value addition is the next target
The government now wants ISM, mobile manufacturing, PLI for electronics hardware and ECMS to collectively raise domestic value addition to 40%.
The strategy focuses on strengthening the complete manufacturing value chain rather than relying mainly on assembly or production.
For consumers, deeper domestic manufacturing could eventually mean that more components used in electronics made in India are sourced or produced locally. The 40% target reflects the government’s broader push to increase India’s contribution to the electronics value chain as its semiconductor ecosystem develops.
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