Electronics Component Manufacturing Scheme

• On March 28, 2025, the Union Cabinet approved the Electronics Component Manufacturing Scheme (ECMS). 

• The scheme was notified on April 8, 2025 with an outlay of Rs 22,919 crore.

• To capitalise on the momentum, Finance Minister Nirmala Sitharaman proposed to increase the outlay to Rs 40,000 crore in the Union Budget 2026-27. 

Electronics Component Manufacturing Scheme

• It aims to support manufacturing of components such as printed circuit boards, mechanical components, sub-assemblies, camera modules, optical transceivers, capital goods needed to manufacture these components, etc.

• It also aims to develop a robust component ecosystem by attracting large investments (global/domestic) in electronics component manufacturing ecosystem, by developing capacity and capabilities, and integrating Indian companies with Global Value Chains (GVCs).

• The scheme is expected to attract investment of Rs 59,350 crore, resulting in the production of electronic components worth over Rs 4.5 lakh crore and generate additional direct employment of 91,600 persons and many indirect jobs during its tenure.

• The scheme is spread over a period of six years with three incentive components — employment, capital requirement and turnover of the companies.

• Through the scheme, the government is looking to have a change in the mindset of companies to export-led growth to become a major supplier of many of the electronic components.

(The author is a trainer for Civil Services aspirants.)