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Below the Inputs on the Ministry of Electronics and Information Technology approved seven new projects worth Rs 5,532 crore under the ECMS by Kunal Gala, Partner, Deal Value Creation, BDO India

"The government’s approval of seven electronics component projects worth Rs 5,532 crore under the Electronics Component Manufacturing Scheme marks another step in India’s effort to build depth in its electronics value chain. The new projects spanning printed circuit boards, camera modules, copper-clad laminates and polypropylene films are expected to generate over Rs 36,559 crore in output and create more than 5100 direct jobs.
From an M&A lens, this momentum could redefine how strategic investors look at India’s electronics landscape. For the first time, component manufacturers and low-margin suppliers, long viewed as fragmented, are becoming core assets in India’s manufacturing strategy. As global OEMs and Tier-1 players seek to localise sourcing, we may see a new wave of vertical integration and platform consolidation, where domestic component makers become acquisition targets for global entrants looking to shorten setup time and de-risk supply chains. In parallel, private equity may pursue “buy-and-build” strategies that stitch together niche component capabilities into scaled, export-ready platforms. In that sense, the ECMS is not just an incentive scheme; it’s a policy that’s actively creating an M&A market where scale, technology, and localisation intersect and where the early movers will define India’s next industrial growth story."

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