Electronics Components Manufacturing Scheme (ECMS)

31.10.2025

1. Electronics Components Manufacturing Scheme (ECMS)

Overview

The Electronics Components Manufacturing Scheme (ECMS), launched by the Ministry of Electronics and Information Technology (MeitY) in 2024, aims to strengthen India’s electronics component manufacturing ecosystem. The scheme seeks to reduce import dependence on critical electronic parts, promote domestic production of sub-assemblies, bare components, and capital equipment, and enhance domestic value addition (DVA) while integrating Indian firms into global electronics and semiconductor supply chains.

Key Features

• Financial Outlay: Approved by the Union Cabinet with a total investment of ₹22,919 crore (~USD 2.7 billion) for six years plus an optional gestation year.
   
• Incentives: Offers turnover-linked, capital expenditure, and hybrid incentives to support targeted manufacturing segments.
   
• Target Segments: Multi-Layer and High-Density Interconnect (HDI) PCBs, Camera Modules, Copper Clad Laminates (CCL), Polypropylene Films, and essential capital equipment.
   
• Production Goals: 100% domestic demand coverage for Copper Clad Laminates, 20% for PCBs, and 15% for Camera Modules.
   
• Strategic Focus: Building a complete domestic manufacturing chain for telecom, consumer electronics, automotive, medical devices, and renewable energy sectors.
   

Recent Approvals and Impact

• First Batch: Seven projects worth ₹5,532 crore, expected to generate ₹36,559 crore in production and over 5,100 direct jobs, primarily in Tamil Nadu, Andhra Pradesh, and Madhya Pradesh.
   
• Components Covered: Multi-Layer and HDI PCBs, Camera Module sub-assemblies, Copper Clad Laminates, and Polypropylene Films.
   
• Benefits: Reduces import dependence, lowers domestic product costs, and strengthens supply chains for defence, telecom, EVs, and industrial sectors.
   
• Complementary Initiatives: Works alongside the Production Linked Incentive (PLI) scheme and the India Semiconductor Mission (ISM) to create an end-to-end electronics ecosystem.
   

Economic Significance

• Electronics manufacturing has become India’s third-largest export segment in 2024–25.
   
• ECMS is expected to accelerate growth, positioning India as a global hub for high-value components.
   
• The scheme has attracted 249 applications worth over ₹1.15 lakh crore, with potential production exceeding ₹10.34 lakh crore over six years, creating 1.4 lakh direct jobs.
   

Conclusion

The Electronics Components Manufacturing Scheme (ECMS) is a strategic initiative advancing India’s self-reliance (Atmanirbhar Bharat) in electronics. By incentivizing domestic production, reducing imports, and enhancing supply chains, ECMS is set to boost India’s electronics ecosystem, generate employment, and support key emerging sectors including telecom, electric vehicles, and defence.