Make in India: Why sum of parts is bigger than the whole

India's journey towards economic self-reliance and global manufacturing prowess has found a significant catalyst in the 'Make in India' initiative, launched on September 25, 2014. A critical pillar of this ambitious vision, particularly in the technology sector, is the Electronics Components Manufacturing Scheme (ECMS). For decades, India has been a major consumer of electronics, but largely reliant on imports for components, leading to a substantial trade deficit and vulnerability in supply chains. The ECMS aims to transform India from a mere assembler of electronic products into a hub for sophisticated component manufacturing.

Historically, India's industrial policy, post-independence, emphasized self-sufficiency but often struggled with global competitiveness and technological advancement. The liberalization reforms of 1991 opened up the economy, leading to increased access to global markets and technology, but also a surge in imports, particularly in electronics. The 'Make in India' program sought to reverse this trend by inviting domestic and foreign companies to manufacture in India, fostering innovation, and enhancing skill development. The Electronics Components Manufacturing Scheme (ECMS), initially launched in 2015 and later revised in 2017, was a direct response to the glaring gap in domestic component production, offering financial incentives to bridge this gap.

What happened recently is the approval of the third tranche of the ECMS, signaling continued governmental commitment and successful implementation. This approval is not merely about increasing manufacturing output; it's about deepening the localization of value addition. Instead of just importing Printed Circuit Boards (PCBs) or display panels and assembling them into a smartphone, the goal is to manufacture these complex components within India. This strategic shift is crucial for building a truly comprehensive electronics ecosystem, which includes everything from raw materials to finished products, driving indigenous R&D and intellectual property creation.

Key stakeholders in this endeavor include the Ministry of Electronics and Information Technology (MeitY), which is the nodal ministry responsible for formulating and implementing policies like ECMS. Domestic electronics manufacturers, ranging from established players to emerging startups, are direct beneficiaries and implementers, leveraging the incentives to invest in new facilities and technologies. Foreign investors, attracted by India's large market and incentive schemes, also play a crucial role in bringing capital, technology, and expertise. Consumers ultimately benefit from more affordable and potentially higher-quality domestic products, while the broader economy gains from job creation and reduced import dependence.

This initiative matters immensely for India. Economically, it promises to significantly reduce the electronics import bill, which is one of India's largest, thereby improving the balance of payments. It fosters job creation, both directly in manufacturing units and indirectly in ancillary services, contributing to the government's objective of demographic dividend utilization. Strategically, strengthening the domestic electronics supply chain enhances national security, reducing reliance on potentially hostile foreign sources for critical infrastructure components. The COVID-19 pandemic starkly highlighted the vulnerabilities of global supply chains, making self-reliance in critical sectors like electronics a geopolitical imperative. Furthermore, it positions India as a competitive player in global electronics manufacturing, attracting more Foreign Direct Investment (FDI) and potentially transforming India into an export hub.

From a constitutional perspective, while there isn't a direct article mandating electronics manufacturing, the spirit of ECMS aligns with the Directive Principles of State Policy (DPSP) in Part IV of the Constitution. Articles like **Article 39(b)**, which directs the state to ensure that the ownership and control of the material resources of the community are so distributed as best to subserve the common good, and **Article 41**, which speaks of the right to work, education, and public assistance in certain cases, underpin the state's responsibility to foster economic development and employment. The scheme also resonates with the National Policy on Electronics (NPE) 2019, which set a target of achieving a turnover of USD 400 billion by 2025 in electronics manufacturing, with a focus on local value addition.

Looking ahead, the future implications are profound. Successful implementation of ECMS and related schemes like the Production Linked Incentive (PLI) schemes could position India as a global manufacturing powerhouse in electronics, similar to how it has emerged in IT services. This could spur further investment in research and development, potentially leading to India's entry into advanced areas like semiconductor fabrication, a highly capital-intensive and strategically critical sector. However, challenges remain, including ensuring consistent policy support, developing a highly skilled workforce, and creating a conducive ecosystem for innovation and intellectual property protection. The 'sum of parts' truly becoming 'bigger than the whole' signifies a future where India not only assembles but also innovates and manufactures the very core of global electronics, securing its place in the 21st-century technological landscape.