India clears ₹7,100 crore electronics investments, nod for first rare earth magnets facility

India has approved investments worth ₹7,100 crore under the fourth round of its Electronics Components Manufacturing Scheme on Monday, March 30, as it seeks to strengthen domestic capabilities in key segments of the electronics supply chain.This includes approval to set up India’s first rare earth magnets facility with a proposed investment of ₹700 crore in Uttar Pradesh. Battery recycling firm Lohum Cleantech won the approval.With this round, total approved investments under the scheme have touched ₹61,671 crore, with projected cumulative production of ₹4.51 lakh crore.Mumbai-based electronic components maker Syrma SGS Technology also received approvals for two projects in Andhra Pradesh. It includes a ₹588 crore flexible printed circuit board (PCB) unit and a ₹385 crore laminates facility.The approved projects are expected to generate production of ₹85,515 crore, spanning rare earth magnets, capital equipment and lithium-ion cells, among other areas. Also Read: Budget 2026: India boosts electronic component manufacturing with ₹40,000 crore outlay Among other approvals in the fourth round, Dixon Technologies received a nod to invest ₹1,100 crore in a display manufacturing project in Uttar Pradesh, while VVDN Technologies secured approval for a ₹50 crore heat sink unit in Haryana.Union minister Ashwini Vaishnaw flagged gaps in India’s electronics push, warning industry of possible curbs on approvals and fund disbursals under the component PLI scheme over slow progress.He stressed the need to build deep in-house design capabilities, saying firms that fail to invest in design risk being “weeded out,” as India looks to reduce import dependence in high-value components.The Electronics Component Scheme targets deeper domestic manufacturing in high-value components, where India still relies heavily on imports despite gains in finished electronics.It complements Make in India and PLI-led growth in mobile assembly, aiming to plug gaps in the components ecosystem, which accounts for 60–70% of product value.The focus on areas like display panels, PCBs, rare earth magnets and lithium-ion cells is strategic, given their role in EVs, renewables, and defence, while reducing supply chain dependence amid the China+1 shift.Also Read: Tamil Nadu polls: TVK candidates list released, chief Vijay to contest from Perambur and Trichy East seats 

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