India’s Electronics Component Manufacturing Scheme Surpasses Targets

The Electronics Component Manufacturing Scheme (ECMS) has received applications far exceeding its initial targets. As of 30 September 2025, investment promises total ₹1,15,351 crore, nearly double the government’s target of ₹59,350 crore. This surge reflects strong industry interest in deepening India’s electronics manufacturing ecosystem beyond finished goods and semiconductor fabrication.

Background and Objectives of ECMS

Launched in April 2025, ECMS complements the India Semiconductor Mission. It aims to promote manufacturing of electronic components such as printed circuit boards (PCBs) and sub-assemblies. The scheme offers output- and employment-linked incentives to approved firms. The government allocated ₹22,919 crore to support this initiative over six years.

Investment and Production Promises

Applications received promise production worth over ₹10,34,000 crore, more than double the target of ₹4,56,500 crore. This indicates strong confidence in India’s electronics sector growth potential. One company alone committed ₹22,000 crore investment. The surge is driven by sectors like electro-mechanical components and multi-layer PCBs, which attracted the highest number of applicants.

Employment Impact

The scheme targets employment generation of 91,600 persons. However, applicants project hiring around 1,41,000 workers, 1.5 times the target. This suggests job creation potential in electronics manufacturing and related supply chains.

Application and Approval Process

The government received 249 applications spanning diverse components. Incentive disbursal will follow a “first come first served” policy to encourage early market entry. The Ministry of Electronics and Information Technology has begun fast-tracking application scrutiny to expedite approvals.

Future Developments

The government plans to expand incentives to raw materials manufacturing under the upcoming second phase of the India Semiconductor Mission. This phase is under formulation and has generated positive industry interest. Such expansion aims to further strengthen the domestic electronics value chain.

Significance for India’s Electronics Industry

ECMS marks a strategic move to reduce import dependence and build a robust manufacturing base. By focusing on components and sub-assemblies, India aims to capture higher value addition in electronics production. The scheme’s success could position India as a global electronics manufacturing hub.