Govt approves 12 more projects under ECMS scheme

• Union Minister Ashwini Vaishnaw announced approval of 12 additional projects under the Electronics Components Manufacturing Scheme (ECMS), involving proposed investments of Rs 7,503 crore.

• These projects are expected to generate production worth Rs 39,045 crore and create 7,127 direct jobs.

• For the first time under the scheme, approvals have been granted for copper foil, cathode active material and speciality ceramics manufacturing.

• The approved projects are spread across seven states — Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Tamil Nadu and Uttar Pradesh, further expanding the geographical footprint of electronics component manufacturing in the country.

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).

• Overall, 118 applications covering 34 products across 16 states have been approved under ECMS, amounting to expected investment of Rs 77,051 crore, projected production of Rs 5,73,146 crore and expected direct employment for 81,755 persons.

• 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.