Govt clears 31 proposals under Electronics Component Manufacturing Scheme (ECMS)

• The Ministry of Electronics and Information Technology (MeitY) has approved 31 fresh proposals under the Electronics Components Manufacturing Scheme (ECMS) with projected investment of Rs 6,844 crore. 

• With these approvals, overall, 106 applications covering 30 products across 15 states have been approved under ECMS, amounting to expected investment of Rs 69,548 crore.

• These approved projects are expected to generate 74,628 direct jobs, and 2.5 lakh indirect employment.

• These approvals will strengthen domestic supply chains, deepen value addition, reduce import dependence, and build advanced manufacturing capabilities, further advancing India’s emergence as a global electronics manufacturing hub.

• It is in line with the government’s broader goal of positioning India as a global hub for electronics manufacturing.

• The latest approvals include first-ever domestic manufacturing of diverse critical components such as filters, coils and speakers, along with essential raw materials such as acetylene black and electrolyte additives.

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.

• 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.

• Of the 106 projects approved so far, 38 plants have already commenced manufacturing, while another 16 projects are at advanced stages of construction or machinery installation.