Why in the News?
The Electronics Components Manufacturing Scheme (ECMS) is being implemented to deepen India’s domestic electronics ecosystem, reduce import dependence and increase domestic value addition in the electronics supply chain.
Key Highlights
- ECMS notified: 8 April 2025
- Initial outlay: ₹22,919 crore
- Tenure: 6 years, with optional 1-year gestation period
- Union Budget 2026-27: outlay increased to ₹40,000 crore
- Capex incentive available for 5 years
- As of August 2026:
- 106 projects approved
- Across 15 States
- Covering 30 electronic domain products
- Approved investment: ₹69,548 crore
What Does ECMS Support?
The scheme promotes domestic manufacturing of:
- Electronic components
- Sub-assemblies
- Supply-chain products
- Related capital goods
Critical Import-Dependent Components
- Printed Circuit Boards (PCBs)
- Camera modules
- Display modules
- Connectors
- Capacitors
- Lithium-ion cells
- Rare-earth magnets
- Core objective: Move India beyond electronics assembly towards deeper domestic manufacturing and value addition.
Progress Under ECMS
- Production has started at 38 approved plants.
- 16 projects are at advanced construction or machinery-installation stages.
- Expected production: ₹5.34 lakh crore
- Expected employment:
- 74,628 direct jobs
- 2.5 lakh indirect jobs
SEMICON India 2026
- Theme: “Silicon to Systems: Building the Ecosystem”
- Venue: Yashobhoomi, New Delhi
- Dates: 17-19 September 2026
- Focus: strengthening India’s semiconductor ecosystem across the value chain.
Other Government Initiatives
National Policy on Electronics 2019 (NPE 2019)
- Aims to make India a global hub for Electronics System Design and Manufacturing (ESDM).
Production Linked Incentive (PLI) for Large-Scale Electronics Manufacturing
- Performance-linked incentives of 4%-6% on incremental sales for eligible segments.
SPECS [Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors]
- Provided 25% capital expenditure incentive for eligible components, semiconductor/display fabrication, ATMP units, sub-assemblies and capital goods.
EMC 2.0
Modified Electronics Manufacturing Clusters 2.0
- Provides manufacturing infrastructure, common facilities and Plug-and-Play capacity.
PLI for IT Hardware
- Promotes domestic IT hardware manufacturing and investment.
Semicon India Programme
- Semicon 1.0: ₹76,000 crore
- Semicon 2.0: ₹1,27,500 crore, approved in July 2026
- Supports fabs, packaging, testing, design and related semiconductor capabilities.
Electronics Manufacturing Clusters (EMC) Scheme
- Financial assistance up to 50% of project cost
- Ceiling of ₹50 crore per 100 acres for greenfield projects.
Phased Manufacturing Programme (PMP)
- Uses a structured tariff approach to deepen domestic value addition in mobile phones and key sub-assemblies.
Electronics Development Fund (EDF)
- A Fund of Funds investing through venture funds to provide risk capital for innovation, product design and startups in ESDM and IT.
India’s 2030 Target
- India is targeting $500 billion domestic electronics manufacturing ecosystem and $150 billion electronics exports by 2030.
