The Central Government has approved 22 new projects under the Electronics Components Manufacturing Scheme (ECMS) to accelerate electronics manufacturing.

An investment of about ₹ 41,863 crore and production of about ₹ 2.58 lakh crore is expected from these projects. This initiative is likely to create around 33,791 direct jobs, which is a strong positive signal for employment.

The companies receiving approval include big industry players like Dixon, Samsung Display Noida, Foxconn’s Yuzhan Technology India and Hindalco Industries. This is the third tranche of ECMS, covering 11 product segments including mobile phones, automotive, strategic electronics and IT hardware.

Projects will be spread in 8 states, which will promote balanced regional growth. Overall, ECMS is being considered an important step towards taking India out of import dependency and making it a global electronics manufacturing hub.

Moody Report on India’s Manufacturing: Additional 25 percent tariffs imposed by US President Donald Trump on Indian goods can become a major challenge for India. It can emerge as a significant obstacle in front of India’s self -sufficient mission. US rating agency Moody’s has reported in its forecast that the additional penalty trump imposed on India due to frequent purchases of cheap Russian oil will have a direct impact on the manufacturing competition of the country.

It is worth noting that the announcement of 25 percent tariff on India was announced by the US on 31 July, which has become effective from 7 August. Apart from this, Trump announced 25 percent penalty as an additional fine on August 6, which will be applicable from August 28. However, the routes of possible negotiations between the two countries are still open.

Increased challenge for India

Moody’s said on Friday that India’s ambitious ‘Make in India’ campaign may be affected due to high tariff rates than other Asian countries and the manufacturing sector may be shocked. Its impact will be more visible in particularly high -value electronics sectors.

If the additional tariffs imposed on India are effective due to purchasing oil from Russia, then the self -reliant Bharat Abhiyan, which is aimed at promoting domestic production and reducing foreign dependence, may be adversely affected.

Impact on ‘Make in India’

Under ‘Make in India’, since 2020, the Government of India has been giving exemption and encouragement to promote various sectors. Its positive impact has been seen in the past years. There has been a tremendous boom within the country in drugs and mobile construction, while areas such as textile, semiconductor industry and solar energy are moving relatively slow.

During the financial year 2024-25, India’s trade with the US stood at $ 131.8 billion, which makes it clear that America is a major trade partner of India. India’s exports to the US reached around $ 86.5 billion, which mainly includes textile, electronics, machinery and medicines. Most of these products are part of the incentive schemes given under the PLI scheme of the Government of India.

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Moody on India Growth: US rating agency Moody’s says that the ongoing confusion over the trade deal with the US and the new tariffs announced by President Donald Trump will affect India’s economic growth. According to Moody’s ratings, India’s limited access to the US market will reduce the possibilities of increasing the country’s manufacturing sector, especially high value -added areas such as electronics. However, the agency also said that India’s domestic demand will remain strong towards these external pressures.

25 percent import duty announcement

President Trump has announced to impose 25 percent additional duty on products imported from India, which will be in addition to the current standard import duty. This tariff will be implemented from August 7. Apart from the tariff, Trump has also announced that India will be imposed ‘penalty’ due to trade with Russia. However, no clear information has been given about the amount or form of this possible penalty.

Negative effect of tariff

Christian D. Gujman, Senior Vice President of Moody’s Rating, said that the revised fee on Indian products is much higher than other major exporters in the Asia-Pacific region. While the import duty on other countries is between 15 to 20 percent, India is facing a much higher rate. “Due to limited access to the world’s largest economy (America), Gujman says,” India’s manufacturing sector- especially the possibility of growth of high price-added sectors, especially electronics may decrease. “

Growth may cause loss

India is trying to attract trade and investment from China, but high tariffs may affect its competitiveness. India and America are currently talking about a bilateral trade agreement.

Significantly, America is the largest trade partner in India and in the year 2024, America’s share in India’s total exports was 18 percent. Moody’s believes that India’s domestic demand will remain strong, as India’s economy is less dependent on international trade than other major economies in the Asia-Pacific region.

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India’s manufacturing PMI: Despite global uncertainties, there has been a significant increase in India’s manufacturing sector in July. The PMI index remained over 58 for the second consecutive month. The figure was 58.4 in June, which increased to 59.1 in July- this is the highest level of the last 16 months.
Manufacturing sector boom

Seasonally adjusted HSBC India Manufacturing Purchase Manager Index (PMI) increased from 58.4 of June to 59.1 in July. This is a sign of the strongest improvement in the region since March 2024. The PMI extending above 50 of the index indicates expansion in production activities, while the figure below 50 indicates contractions.

Key points in HSBC report

HSBC Chief Indian Economist Pranjul Bhandari said that the manufacturing sector growth in July was at 59.1, which is more than 58.4 in June. This increase became possible due to new orders and strong increase in production.

Sale and production at record level

According to the survey, the total sales increased at the fastest speed in about 5 years. As a result, manufacturing growth reached a 15 -month high. The survey also stated that Indian manufacturers are convinced about the increase in production in the next 12 months. However, the overall positive spirit has come to its low level in the last three years.

Pressure on cost and prices

According to the survey, the cost of raw materials increased rapidly in July. The prices of items such as aluminum, leather, rubber and steel increased, causing the cost pressure to increase. Due to the high demand situation, companies have also increased the prices of their products. The SBC India Manufacturing PMI is prepared by S&P Global based on the answers to the questions sent between about 400 manufacturing companies.

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Rahul Gandhi Attacks on PM Modi: Leader of Opposition in Lok Sabha and Congress MP Rahul Gandhi on Saturday strongly criticized Prime Minister Narendra Modi’s “Make in India” initiative. He said that this scheme, launched with big promises in 2014, neither flooded the factories in the country nor got employment to the youth. On the contrary, the manufacturing capacity of the country has come down to just 14% and unemployment among the youth is at a record level.

“Make in India has failed”: Rahul Gandhi
Rahul Gandhi shared a video on the social media platform X (East Twitter) and wrote, “Make in India ‘promised the factory boom. So why is the manufacturing records at a low level? Why the unemployment of the youth is increasing? And why has imports doubled from China? The art of giving slogans to Modi ji has come, but he is felt in the solution.”

Youth dreams incomplete, China earning profit
Rahul Gandhi, while referring to the meeting with two young Shivam and Saif at Nehru Place in New Delhi, said that both of them are skilled, talented and hardworking youth, but they are not getting the opportunity to fulfill their dreams. Rahul Gandhi said, “We only assemble, ask for goods from outside, but do not make real construction. China is earning profit and our youth are missing behind.”

He termed India’s current economic policy as unbalanced and opportunistic. Rahul said that since 2014, the contribution of manufacturing sector has fallen to 14%, which is very worrying. He also alleged that imports from China have doubled in the past years, which has directly affected the small industries of the country.

PLI scheme is also being closed quietly- Rahul Gandhi
Expressing deep concern over the government’s industry policy, Rahul Gandhi said that Prime Minister Modi has no new idea now. He also claimed that the PLI scheme which was discussed a lot about the scheme, is now being ended silently. Modi ji has now given up hope of increasing Indian industries.

“If India will not make it, it will only buy”
Rahul Gandhi warned that if India does not increase its construction capacity, then we will only become a market for other countries. He said that India now needs a fundamental change with honest reforms and financial support. Rahul Gandhi said, “We do not just have to be a market, but to become a producer. If we do not build here, we will always buy from those who do. The needles of the clock are going on fast.”

India’s manufacturing sector growth: This is good news for India on the domestic front of global uncertainty. In the month of April, the growth rate in India’s manufacturing sector has reached the highest level in the last 10 months. This is the highest increase in production after last year i.e. June 2024. During a monthly survey, its information was given on Friday.

In April, the seasonally adjusted ‘HSBC India Manufacturing Purchase Manager Index’ (PMI) increased to 58.2, which was 58.1 in March a month earlier. If the score under PMI remains above 50, then it is believed that the production has expanded, while the production is considered to decline if it remains below it.

Increased production

The recent improvement in production was seen due to the increase in new audience. Both domestic and international demands have helped in the growth of manufacturing sector. If the survey is to be believed, then the total sales have increased due to the increase in international demands. In response to the questions asked in this survey, the participants said that the highest increase in the new business from abroad has been seen in the beginning of 2025-26 in the last 14 years.

HSBC Chief Economist Pranjul Bhandari says that the new export order has seen growth in the month of April which is pointing to a change in production in India. This has increased employment and purchases. At the same time, strong demand for Indian goods abroad has helped companies pricate on the price front, which increased the selling fee significantly after October 2013.

Record high in 10 months

This was despite a slight increase in the cost of raw materials. The April figures were clear about strong optimism about the possibility of production in the coming year, which was inspired by the expectations of strengthening demand. Marketing efforts, increase in efficiency and new customer inquiries also emphasized positive forecasts. HSBC India Manufacturing PMI has been prepared by S&P Global on the basis of answers to questions sent to purchasing managers in a group of about 400 manufacturers.

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