Electronics and IT Minister Ashwini Vaishnaw stressed that companies participating in the Electronics Components Manufacturing Scheme (ECMS) must invest in designing products in India to continue receiving government support. He made this clear during a press conference, stating that incentives and assistance would be linked to progress in developing indigenous design, quality, and engineering capabilities under the ECMS framework. Vaishnaw warned of potential consequences if companies did not meet the government’s demands, including his possible absence from future industry meetings.
Vaishnaw expressed disappointment at the slow progress of companies in enhancing their design and quality capabilities. He cautioned that tough decisions could be taken if corrective actions were not implemented. The minister emphasized the importance of companies delving deeper into quality, design, and engineering aspects, urging them to broaden their capabilities beyond assembly and basic manufacturing to include conceptual, engineering, and manufacturing design.
Companies that fail to meet the government’s core requirements may face withheld funds, even if they have received approvals under ECMS. The Ministry of Electronics and Information Technology has approved 29 applications in the fourth tranche of the subsidy scheme, with a total investment of Rs 7,104 crore, surpassing the investment target of Rs 59,350 crore. Vaishnaw highlighted the significance of design being done in India, stating that while manufacturing adds value, design holds higher strategic importance.
Emphasizing the need for global-quality standards, Vaishnaw mentioned the importance of Six Sigma processes for product completeness. He underlined the government’s focus on reliability, precision, and consistency, stressing the industry’s role in talent development. The minister called on companies to invest in skilled manpower alongside physical infrastructure, with the expectation that the industry would lead in developing high-quality design and engineering talent.
