News Image
Zee Business

Big boost for electronics manufacturing? EMC 2.0 scheme promises 1.8 lakh jobs, Rs 1.46 lakh crore investment

Published on 17/12/2025 06:46 PM

India’s push to become a global electronics manufacturing hub is gathering pace, with the government projecting large-scale job creation and fresh private investment under the Electronics Manufacturing Clusters (EMC) 2.0 scheme. Official data shows the programme is steadily translating policy intent into factories on the ground, with approved projects spread across multiple states and several units already beginning production. Policymakers say the emphasis goes beyond headline numbers. The broader aim is to put in place a manufacturing ecosystem that brings down costs, builds stronger supply chains and supports steady job creation over the long term.

The Modified Electronics Manufacturing Clusters (EMC 2.0) scheme, notified in April 2020, is designed to give electronics manufacturing in India a stronger foundation. By doing so, it lowers entry hurdles for manufacturers, cuts down project lead times and improves India’s competitiveness as a global electronics manufacturing hub.

According to the Ministry of Electronics and Information Technology, the approved EMC 2.0 projects are expected to attract investment of more than Rs 1.46 lakh crore. Over time, this scale of activity is projected to generate around 1.80 lakh jobs, both directly and indirectly, across the electronics value chain.

The government has approved 11 electronics manufacturing clusters and two common facility centres under EMC 2.0. Together, these projects cover close to 4,400 acres of land. The total project cost stands at Rs 5,226.49 crore, of which the Centre is providing financial assistance of Rs 2,492.74 crore.

A key requirement under the scheme is that each cluster earmarks at least 10 per cent of its area for ready-built factory sheds. These plug-and-play facilities are designed to help companies begin operations quickly, without waiting years to build infrastructure from scratch.

Industry interest in the scheme has been strong. As per official figures, 123 manufacturers have committed investments worth about Rs 1.13 lakh crore in the approved clusters. Importantly, this is no longer just on paper.

Nine manufacturing units have already commenced operations, investing Rs 12,569.69 crore so far.

At present, these units together employ 13,680 people, offering an early indication of the kind of job creation that could follow as more projects move from the drawing board to the factory floor.

An independent assessment by the National Institute for Micro, Small and Medium Enterprises points to wider gains from the EMC 2.0 programme. The study highlights smoother supply chains, lower logistics costs and better access to shared facilities within manufacturing clusters.

Government officials see EMC 2.0 as a key pillar of India’s electronics manufacturing push, working alongside production-linked incentives and other policy measures. By putting infrastructure in place first, the scheme is intended to help manufacturing scale steadily rather than in short, uneven spurts.