Centre Approves Third Phase of Electronics Components Manufacturing Scheme

The Centre has approved the third phase of the Electronics Components Manufacturing Scheme (ECMS) with an outlay of ₹41,863 crore, reinforcing India’s push to deepen domestic electronics manufacturing. The decision marks another step towards reducing import dependence and building a resilient component ecosystem aligned with the country’s industrial and export goals.

Key Approvals and Industry Participation

The third phase of ECMS has cleared proposals from major firms including BPL, Wipro Hydraulics, Motherson Electronics, Tata Electronics, Samsung Display, Dixon Electronics and ATL Battery Technology. According to Union Minister for Electronics and IT Ashwini Vaishnaw, the scheme has so far recorded 46 approvals across its phases, reflecting strong industry response to policy incentives.

Investment, Employment and Timelines

Cumulative investment under the scheme has reached ₹54,567 crore, resulting in direct employment generation for around 51,000 people. The government has given participating companies six weeks to submit detailed manufacturing plans outlining capacity creation, component focus areas and support requirements. Officials said the Centre will extend substantial financial and policy support based on these submissions.

Boost to Domestic Capabilities and Import Substitution

The minister highlighted significant gains in domestic manufacturing capability since the scheme’s launch last year. India has seen reduced imports of critical components such as printed circuit boards, lithium-ion cells, connectors, camera modules and display modules. At the same time, export capabilities have emerged in high-precision mobile phone enclosures, strengthening India’s position in global electronics supply chains.

Imporatnt Facts for Exams

• ECMS aims to strengthen India’s electronics component manufacturing ecosystem.
• The scheme supports import substitution and export-oriented manufacturing.
• Electronics manufacturing is a key pillar of the Make in India initiative.
• Employment generation is a core objective of production-linked schemes.

Strategic Importance for India’s Electronics Sector

The approval of the third phase comes amid rising global demand for diversified electronics supply chains. Officials said ECMS complements other incentive programmes by focusing on components rather than only finished products. The government expects the scheme to accelerate technology adoption, attract long-term investment and position India as a competitive hub for electronics components manufacturing.