Ministry of Electronics and Information Technology (MeitY) has approved 22 new proposals under Electronics Components Manufacturing Scheme (ECMS), marking a major push to strengthen India’s electronics component ecosystem.
- Projected investment: ₹41,863 crore
- Projected production: ₹2,58,152 crore
- Direct employment potential: 33,791 jobs
These approvals come in continuation of 24 proposals approved earlier involving an investment of ₹12,704 crore, highlighting the strong industry response to the scheme.
Key Highlights
- Major companies approved:
- Dixon Technologies
- Samsung Display Noida Pvt Ltd
- Foxconn (via Yuzhan Technology India Pvt Ltd)
- Hindalco Industries
- Total target segments covered: 11 products with cross-sectoral applications.
- Employment generation: Mandatory under ECMS, reinforcing manufacturing-led job creation.
- Supply chain impact: Focus on reducing import dependence and boosting domestic value addition.
Multi-Sector Applications
The approved proposals span 11 target segment products that cater to multiple sectors, including:
- Mobile manufacturing
- Telecom
- Consumer electronics
- Strategic electronics
- Automotive electronics
- IT hardware
This ensures that ECMS strengthens horizontal supply chains, not just one end-use industry.
Projects Spread Across States
The approved projects are geographically diversified across eight states, supporting balanced industrial growth:
- Andhra Pradesh
- Haryana
- Karnataka
- Madhya Pradesh
- Maharashtra
- Tamil Nadu
- Uttar Pradesh
- Rajasthan
This aligns with the government’s objective of decentralised electronics manufacturing hubs.
Components and Sub-Assemblies Covered
Bare Components (5)
- Printed Circuit Boards (PCBs)
- Capacitors
- Connectors
- Enclosures
- Lithium-ion (Li-ion) Cells
Sub-Assemblies (3)
- Camera Modules
- Display Modules
- Optical Transceivers
Supply Chain / Materials (3)
- Aluminium Extrusions
- Anode Materials
- Laminates
These approvals are expected to plug critical gaps in India’s electronics supply chain.
Electronics Components Manufacturing Scheme (ECMS)
- Nodal Ministry: Ministry of Electronics and Information Technology (MeitY)
- Approved by: Union Cabinet (2024)
- Nature: India’s first dedicated PLI-style scheme for electronic components and materials
Objective
- Promote domestic manufacturing of:
- Bare components
- Sub-assemblies
- Capital equipment
- Enhance Domestic Value Addition (DVA)
- Integrate Indian firms into Global Value Chains (GVCs) in electronics and semiconductors
Incentive Structure under ECMS
The scheme offers three incentive models:
- Turnover-linked incentive – based on incremental revenue
- Capex-linked incentive – based on investment in plant & machinery
- Hybrid model – combination of turnover + capex
- Incentive range: 1%–10% (component- and year-specific)
- Employment generation: Mandatory eligibility condition
Tenure
- Turnover-linked incentive: 6 years (including 1-year gestation)
- Capex incentive: 5 years
Key Features and Targets
- Target segments: PCBs, Camera Modules, Copper-Clad Laminates, Polypropylene Films, Capital Equipment
- Strategic targets:
- 100% domestic demand for Copper Clad Laminates
- 20% domestic share for PCBs
- 15% domestic share for Camera Modules
- Employment potential: ~91,600 direct jobs over the scheme period
- R&D boost: Strengthening indigenous design and process capabilities
Complementary Ecosystem
ECMS works in synergy with:
- Production Linked Incentive (PLI) for Electronics
- India Semiconductor Mission (ISM)
Together, they aim to create an end-to-end electronics manufacturing ecosystem — from materials and components to finished devices.
Significance for India
- Electronics is India’s 3rd-largest export sector.
- India is the 2nd-largest mobile phone manufacturer globally.
- ECMS is a critical pillar in achieving the target of a USD 500 billion electronics manufacturing ecosystem by 2030–31.
- Reduces import dependence on critical components.
- Strengthens strategic and high-value manufacturing capabilities.