Electronics Component Manufacturing Scheme (ECMS)

Electronics Component Manufacturing Scheme (ECMS)

Context: The government has received 70 applications for its ₹23,000-crore electronics component manufacturing scheme, and a majority of the applicants are small and medium enterprises. 

Important Pointers:  

  • What It Is: India’s first dedicated PLI scheme focused on electronics components manufacturing to boost domestic capability and strengthen participation in the global electronics supply chain

  • Ministry Involved: Ministry of Electronics and Information Technology (MeitY) 

  •  Budget & Tenure

  • Outlay: ₹22,919 crore 

  • Duration: 6 years (FY 2025–26 to FY 2031–32) 

  • Gestation Period: 1 year 

  •  Investment: Attract global and domestic investment in electronics component manufacturing. 

  •  Value Addition: Boost Domestic Value Addition (DVA) and integrate with Global Value Chains (GVCs)

  •  Job Creation: Generate over 91,600 direct jobs

  •  Production Target: Contribute to India’s $500 billion electronics production goal by 2030

  •  Incentive Structures

  • Turnover-linked: Based on revenue. 

  • Capex-linked: Based on capital investment. 

  • Hybrid: Combination of both. 

  •  Employment Linkage: Incentives tied directly to job creation metrics

  •  Target Segments

  • Sub-assemblies: Display & camera modules 

  • Bare components: PCBs, Li-ion cells 

  • Capital equipment & supply chain: Tools and infrastructure 

  •  Ease of Doing Business: Simple guidelines, transparent process, first-come, first-served approval. 

  •  Focus on Quality

  • Adherence to Six Sigma standards 

  • Requirement to build domestic design teams