India is rapidly advancing in electronics manufacturing, driven by government initiatives, notably the Modified Electronics Manufacturing Clusters (EMC 2.0 Scheme). Launched by the Ministry of Electronics & IT in April 2020, this scheme aims to create a robust, self-reliant, and globally competitive electronics manufacturing ecosystem. It is projected to generate approximately 1.80 lakh (180,000) direct and indirect jobs, boosting employment and economic growth.
Core Objectives of the EMC 2.0 Scheme
The EMC 2.0 Scheme is a comprehensive initiative designed to:
- Develop world-class infrastructure.
- Attract substantial investments.
- Enhance the electronics manufacturing ecosystem.
It provides targeted financial assistance for establishing Electronics Manufacturing Clusters (EMCs) and Common Facility Centers (CFCs). These centers offer industrial plots, ready-built factory sheds, and “plug-and-play” setups to facilitate swift manufacturer operations.
The scheme aims to:
- Strengthen domestic manufacturing capabilities.
- Deepen the electronics value chain.
- Improve supply chain responsiveness.
- Reduce logistics costs.
This supportive environment is intended to enable business growth, increase employment, and position India as a global manufacturing hub.
Greenfield and Brownfield Projects under EMC 2.0 Scheme
The scheme supports both new (Greenfield) and existing (Brownfield) manufacturing zones:
- Greenfield EMCs: Development of new infrastructure on undeveloped land.
- Brownfield EMCs: Upgrading existing zones with infrastructure improvements (roads, power, water, waste management).
It also vigorously supports the establishment and enhancement of Common Facility Centers (CFCs), which provide shared technical infrastructure like R&D labs, testing facilities, and skill development centers. CFCs are particularly beneficial for Micro, Small, and Medium Enterprises (MSMEs).
Financial Assistance Structure:
- Greenfield Projects: Funding up to 50% of project cost, capped at ₹50 crore per 100 acres.
- Brownfield Projects: Funding up to 75% of project cost, capped at ₹50 crore per 100 acres.
Economic Impact: Investment and Job Creation
The EMC 2.0 Scheme has already attracted significant investment and job creation:
- Approved projects across 10 states are projected to attract over ₹1.46 lakh crore (approx. 146 billion INR) in investment.
- 123 manufacturers have pledged ₹1.13 lakh crore in investments.
As of recent reports:
- 11 electronics manufacturing clusters and 2 CFCs have been approved across 10 states, covering nearly 4,400 acres.
- Total project cost for these initiatives: ₹5,226.49 crore.
- Central government contribution: ₹2,492.74 crore.
- Nine manufacturing units have commenced production, representing ₹12,569.69 crore in investment and employing 13,680 individuals.
- The scheme is progressing towards its target of 1.80 lakh jobs.
An independent study by the National Institute for Micro, Small and Medium Enterprises highlights improvements in supply chains, reduced logistics costs, enhanced skill development, and robust job creation.
Boosting Diverse Electronics Segments
The EMC 2.0 Scheme aims to catalyze growth across various electronics manufacturing segments:
- Consumer Electronics: Smart TVs, audio systems, home appliances.
- Automotive Electronics: For EVs, including sensors, controllers, infotainment systems.
- Medical Devices: Diagnostic devices, monitors, wearable health technology.
- Communication Equipment: Routers, base stations, 5G equipment.
- Computer Hardware: Laptops, servers, data storage.
It also prioritizes high-growth sub-sectors like semiconductors and Internet of Things (IoT) devices, strengthening the Electronics System Design and Manufacturing (ESDM) sector, reducing import dependence, and expanding domestic production.
Approved Clusters and CFCs
Strategically chosen locations for clusters and CFCs provide optimal conditions for advanced electronics manufacturing.
Key Approved EMC 2.0 Clusters and Proposed Project Costs:
- Chhattisgarh: Patewa village, Rajnandgoan District (₹432.08 crore)
- Rajasthan: Village Bhainsara, Tehsil Pokhran (Bhaniyana), District Jaisalmer (₹750.00 crore)
- Gujarat: Sanand-2 Industrial Estate, Sanand (₹642.60 crore)
- Karnataka (KIADB): Vasanthanarasapura Industrial Area Phase 4, Tumakuru District (₹189.35 crore)
- Karnataka (KIADB): Adinarayanahosahalli Industrial Area – Phase 2, Bengaluru Rural (₹218.20 crore)
- Tamil Nadu (SIPCOT): Electronic Manufacturing Cluster at Manallur, Tiruvallur District (₹293.73 crore)
- Karnataka (KIADB): Kotur and Belur (V), Dharwad (T) (₹89.60 crore)
- Maharashtra (MIDC): Village Shirur and Village Karde, Pune district (₹207.98 crore)
- Telangana (TSIIC): Divitipally, Mahabubnagar (₹258.10 crore)
- Uttarakhand (SIIDCUL): SIIDCUL Integrated Industrial Estate, Kashipur (₹57.78 crore)
- Andhra Pradesh (APIIC): Ambavaram (V), Vallur (M); Kopparthy (V), C.K.Dinne (M) and Rampathadu (V), Pendlimarry (M) (₹350.00 crore)
- Haryana (HSIIDC): Industrial Model Township, Sohna (₹331.04 crore)
- Uttar Pradesh (YEIDA): Sector-10, near Jewar Airport, Gautam Buddha Nagar (₹417 crore, expected to attract ₹2,500 crore in investments)
Approved Common Facility Centres (CFCs):
- ADB Road, Aditya Nagar, Surampalem, Andhra Pradesh.
- Village Tuta, Sector 22, Nava Raipur Atal Nagar Vikas Pradhikaran, Distt. Raipur, Chhattisgarh.
- ELCINA EMC Plot No. SPL-1, Industrial Area Salarpur, Bhiwadi, Distt. Khairthal-Tijara (erstwhile Distt. Alwar).
These clusters and CFCs form the backbone of India’s electronics manufacturing aspirations, designed to attract anchor units and foster a competitive environment.
India’s Electronics Future
The EMC 2.0 Scheme is a pivotal step in India’s journey to become a global electronics manufacturing leader. By developing infrastructure, attracting investment, and nurturing a vibrant ecosystem, it generates employment, fosters self-reliance, and enhances global competitiveness. As more units become operational, the “Make in India” vision for electronics will solidify, paving the way for a technologically advanced and self-sufficient future.
About the Author
