Electronics Components Manufacturing Scheme (ECMS) (Government Schemes & Initiatives)
Electronics Components Manufacturing Scheme (ECMS) (Government Schemes & Initiatives)
Why In News:
The government approved 31 fresh proposals under the Electronics Components Manufacturing Scheme (ECMS) involving an investment of ₹7,877 crore.
About ECMS
ECMS is a scheme of the Ministry of Electronics and Information Technology (MeitY), approved by the Union Cabinet in 2025.
It aims to build a self-sustaining electronics component ecosystem, supporting manufacture of printed circuit boards, mechanical components, sub-assemblies, camera modules, optical transceivers, and the capital goods needed to make them.
The scheme integrates India's electronics industry with Global Value Chains (GVCs) and reduces import dependency, particularly from China.
It provides turnover-linked, capex-linked, or hybrid fiscal incentives, with incentives partly linked to employment generation; approvals are on a first-come, first-served basis.
The Union Budget 2026-27 raised the scheme's outlay to ₹40,000 crore, signalling a strong policy push to deepen domestic electronics manufacturing.
Latest Progress
With the latest approvals, 106 applications covering 30 products across 15 States have been approved under ECMS, amounting to an expected investment of ₹69,548 crore.
These approved projects are expected to generate 74,628 direct jobs and 2.5 lakh indirect jobs.
India's electronics production rose from about ₹1.9 trillion in 2014-15 to ₹13.11 trillion in 2025-26, nearly a six-fold increase.
Related Schemes and Policy Framework
ECMS operates under the overarching National Policy on Electronics (NPE), 2019, which aims to position India as a global hub for Electronics System Design and Manufacturing (ESDM).
Production and Employment Targets: Envisaged achieving USD 400 billion in domestic electronics manufacturing turnover, producing 1 billion mobile handsets, and generating around 1 crore jobs.
Strengthening Domestic Manufacturing: Focuses on developing a robust domestic electronics component ecosystem, including chipsets, displays and semiconductor fabrication facilities, to reduce import dependence.
R&D and Innovation: Promotes research and technological development in emerging areas such as 5G, Artificial Intelligence (AI), Internet of Things (IoT) and robotics.
The electronics sector benefits from 100% Foreign Direct Investment (FDI) under the automatic route.
India's stated target is to build a USD 500 billion domestic electronics manufacturing ecosystem by 2030-31.