Electronics Component Manufacturing Scheme (ECMS) Economy

03.11.2025

Electronics Component Manufacturing Scheme (ECMS)

Economy

Context

In 2025, the Ministry of Electronics and Information Technology (MeitY) launched the Electronics Component Manufacturing Scheme (ECMS), aiming to strengthen India's position in the global electronics manufacturing ecosystem.

About the Scheme

Objectives

• To boost indigenous manufacturing of critical electronic components, reducing reliance on imports, especially from China.
• Support the government initiatives of Make in India and Atmanirbhar Bharat.
• Contribute to the National Policy on Electronics target of achieving ₹300,000 crore in electronic production by 2026, including exports worth ₹120,000 crore.

Investment and Projects

• Initial approved investment of ₹5,532 crore for seven projects located predominantly in Tamil Nadu (5 projects), Andhra Pradesh (1), and Madhya Pradesh (1).
• These projects are expected to generate production worth ₹36,559 crore and create over 5,000 direct jobs.
• Collectively, the scheme anticipates attracting investments totaling ₹1.15 lakh crore, with a production value projection of over ₹10.34 lakh crore and creation of approximately 1.42 lakh jobs over six years.

Scheme Mechanics and Key Components

• Financial incentives range from 1% to 10% of production value, applicable for six years after approval with an optional one-year gestation period.
• Focus is on components currently fully imported, including:
  • Printed Circuit Boards (PCBs) and High-Density Interconnect (HDI) PCBs.
  • Camera module sub-assemblies used in smartphones, drones, medical devices, and automotive systems.
  • Copper Clad Laminates (base material for PCBs).
  • Polypropylene Films used in manufacturing capacitors for consumer electronics and industrial equipment.

Impact and Significance

• The scheme will enable India to fulfill domestic demand entirely for many electronic components, minimizing import dependency and improving supply chain resilience.
• Supports the creation of high-skill jobs and boosts the manufacturing ecosystem, including research & development activities.
• Expands India’s footprint in global electronics supply chains, further positioning the country as a major electronics manufacturing hub.
• These projects complement other government initiatives such as the Production Linked Incentive (PLI) scheme and the India Semiconductor Mission.

Conclusion

The ECMS is a strategic initiative strengthening India's electronics manufacturing capabilities by fostering large-scale domestic production of critical components. It accelerates import substitution, job creation, technological advancement, and export readiness, contributing significantly to India’s vision of becoming a global electronics manufacturing powerhouse.