Electronics Component Manufacturing Scheme (ECMS) | 03 Oct 2025

Source:ET 

India’s Electronics Component Manufacturing Scheme (ECMS) has drawn USD 13 billion investment proposals, nearly double its target. With 60% participation from MSMEs, the scheme is set to boost domestic production, reduce import dependence, and create 1.41 lakh direct jobs, strengthening India’s push to become a global electronics hub. 

  • About: The ECMS, launched in April 2025 as a complement to the India Semiconductor Mission, seeks to strengthen India’s electronics value chain beyond finished goods and chip fabrication by boosting Domestic Value Addition (DVA) and linking Indian firms with Global Value Chains (GVCs) 
    • ECMS supports horizontal linkages with automobile, power, and industrial sectors. 
  • Scheme Tenure: 6 years (1 year of gestation period) i.e. from FY2025-26 to FY2031-32. 
  • Incentive Structure: The ECMS provides turnover-linked, capex-linked, or hybrid fiscal incentives, with a portion of both turnover and capex incentives linked to employment generation. 
    • Incentives will be given on a first-come, first-served basis to firms ready for early production.  
  • Significance: Electronics is India's third-largest export, with the country being the 2nd-largest mobile manufacturer globally. The ECMS, along with Production Linked Incentive (PLI) and semiconductor initiatives, is crucial for establishing a USD 500 billion electronics manufacturing ecosystem by 2030-31. 
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