AMCHAM’s Electronics Manufacturing Committee convened virtually on October 8^th under the leadership of Mr. Naveen Tandon, Chairman – Electronics Manufacturing Committee, AMCHAM and Head – Policy & Strategy, Apple India, for a productive session focused on key policy and regulatory developments impacting the electronics sector in India. The meeting provided critical updates on the Electronic Component Manufacturing Scheme (ECMS) and initiated planning for several crucial policy submissions.

The committee reviewed the extraordinary success of the Electronic Component Manufacturing Scheme (ECMS), noting an overwhelming industry response:

• Investment proposals received were over $14 billion, more than double the projected target of $7 billion.
• Production value proposals reached $125 billion, significantly exceeding the $54 billion projection.
• The Ministry of Electronics and Information Technology (MeitY) is currently processing the nearly 250 applications. Successful applicants are expected to be notified within the next 2-3 weeks (mid to late October).
• Action for Members: The committee noted that the application window for Category D – Capital Equipment remains open until March 2027, focusing on reducing dependency on specific countries for critical manufacturing tools.

Two major policy areas were prioritized for detailed action by AMCHAM:

1. Targeted Capital Equipment Policy Proposal: Recognizing India’s heavy dependency on specific countries for capital equipment, the committee resolved to prepare a detailed proposal to inform the National Capital Equipment Policy 2025 being formulated by the Department of Heavy Industries (DHI).
2. Revisiting ‘Deemed Class 2’ for Brands: The committee discussed challenges with the current Public Procurement Order (July 2024), which excludes brands from receiving Class 2 status despite driving the ecosystem, R&D, and sales.

The meeting laid the groundwork for several upcoming government submissions and policy engagements:

• Design Linked Incentive (DLI) – Expansion: A key focus is on advocating for expansion of the DLI scheme to include MNCs and a significant increase in the incentive quantum, which is currently insufficient for large-scale R&D investments ($1 billion+). The committee plans a pre-meeting to consolidate suggestions for a high-level meeting with MeitY.
• Ease of Doing Business (EoDB) and Pre-Budget Recommendations: Members were urged to share inputs on operational challenges for EoDB reforms and policy recommendations for Union Budget 2026 to ensure AMCHAM’s submission is comprehensive.
• Gold Compounds Import: The committee will review and submit a representation on the recent DGFT notification converting gold compounds to ‘restricted’ import status, impacting component manufacturing and raising it as a key EoDB issue.
• Occupational Safety, Health and Working Conditions (OSHWC) Code: Feedback will be collected on the new draft rules under the OSHWC Code by the November 14^th, 2025 deadline to ensure manufacturing facilities can align with new national benchmarks.