Electronics Component Manufacturing Scheme (ECMS)

• The Ministry of Electronics and Information Technology (MeitY) approved 22 proposals under the Electronics Component Manufacturing Scheme (ECMS).
  • These approvals cover the manufacturing of segment products with cross-sectoral applications.
  • Cross-sectoral applications mean components that are used across multiple industries.
• These sectors include mobile manufacturing and telecommunications.
• The approvals further cover consumer electronics manufacturing.
• The scheme supports strategic electronics, which are critical for national security and defence.
• The approvals also extend to the automotive electronics sector.
• The scheme includes components used in IT hardware products.

About Electronics Component Manufacturing Scheme (ECMS)

• The ECMS was notified in April 2025. The scheme has a total financial outlay of ₹22,919 crore. The tenure of the scheme is six years.
• The scheme allows an optional one-year gestation period, which is the preparatory phase before production begins.
• The core objective of ECMS is to develop a robust electronics component manufacturing ecosystem in India.
• The scheme aims to attract both global and domestic investments. These investments are targeted across the electronics value chain.
  • Value chain integration refers to linking raw materials, components, assembly, and final production.
• ECMS seeks to integrate India’s domestic electronics industry with Global Value Chains (GVCs).
  • Global Value Chains (GVCs) are international production networks where different stages of manufacturing occur across countries.

Target Segments under ECMS

• Segment A focuses on Sub-Assemblies.
  • Sub-assemblies under Segment A include Display Modules and Camera Modules.
• Segment B focuses on Bare Components.
  • Bare components include electro-mechanical components and Printed Circuit Boards (PCBs).
  • Segment B further includes Lithium-ion (Li-ion) cells.
• Segment C focuses on Selected Bare Components.
  • Selected bare components include High Density Interconnect (HDI) PCBs and Flexible PCBs.
• Segment D focuses on the Supply Chain Ecosystem and Capital Equipment.
  • Capital equipment refers to machinery used for manufacturing electronic components.
• Segment E focuses on Telecom Sub-Assemblies.

Types of Incentives under ECMS

• ECMS provides differentiated fiscal incentives. These incentives are linked to turnover generated from target segment products.
• Turnover-Linked Incentive (TLI) is provided for Segments A, B, and E.
  • TLI is calculated on incremental turnover or sales. The tenure of TLI is six years.
  • TLI also includes an optional one-year gestation period.
• Capital Expenditure (Capex) Incentive is provided for Segment D.
  • Capex incentive supports eligible capital investments in manufacturing infrastructure.
  • The tenure of the Capex incentive is five years.
• Hybrid Incentive is provided for Segment C.
• Hybrid incentive combines turnover-linked and capex-based incentives.
• The hybrid model is designed based on specific industry requirements.

India’s Electronics Industry: Current Status

• India’s electronics production has witnessed rapid growth in the last decade.
• Production increased from ₹1.9 lakh crore in 2014–15.
• Production reached ₹11.3 lakh crore in 2024–25.
• This growth represents a six-fold increase in electronics production.
• India is now the world’s second largest mobile phone manufacturer.

Electronics Exports Performance

• Electronics has emerged as India’s third largest export category.
• Electronics is also the fastest growing export sector in 2024–25.
• Electronics exports stood at ₹38,000 crore in 2014–15.
• Exports increased to ₹3.27 lakh crore in 2024–25.

India’s Vision for Electronics Manufacturing

• India aims to build a $500 billion domestic electronics manufacturing ecosystem.
• The target year for achieving this vision is 2030–31.