Why in news?
The Electronics Components Manufacturing Scheme has received an overwhelming response from both domestic and international industry leaders.
 
About the scheme

• The Electronics Component Manufacturing Scheme (ECMS) is a major government initiative approved in 2025 with a budget of approximately Rs. 22,919 crore.
• It aims to develop a robust electronics component manufacturing ecosystem by attracting large domestic and global investments.
• The scheme targets increasing domestic value addition in electronic components and integrating Indian manufacturers into global value chains.

Key Features

• Focuses on manufacturing a wide range of electronic components including sub-assemblies, bare components, display modules, camera modules, multi-layer PCBs, lithium-ion cells, and other passive components like resistors and capacitors.
• Provides differentiated production-linked incentives tailored to various component categories to help manufacturers overcome industry-specific challenges.
• Offers three types of incentives: turnover-linked, capital expenditure (capex)-linked, and a hybrid model combining both.
• Employment generation is mandatory, emphasizing skilled job creation.
• The scheme has a tenure of six years with a one-year gestation period.

Targets and Impact

• Expected to attract investments of Rs. 59,350 crore, with actual applications received exceeding Rs. 1,15,000 crore already.
• Projected production value of Rs. 4,56,500 crore, with newer estimates going beyond Rs. 10,34,700 crore in the next six years.
• Aiming to generate approximately 91,600 direct jobs, with actual commitments suggesting up to 1,42,000 jobs.
• Expected to double local value addition in electronics manufacturing from the current 15-20% up to 35-40% within five years.

Strategic Importance

• Supports India's Atmanirbhar Bharat vision to reduce dependency on imports and create a self-reliant electronics supply chain.
• Complements other government policies like the Production-Linked Incentive (PLI) for Large Scale Electronics Manufacturing, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and Electronics Manufacturing Clusters (EMC).
• Encourages investment in both manufacturing and capital equipment to build a resilient and integrated electronics ecosystem in India.

This scheme is seen as a game-changer in boosting India's electronic component manufacturing sector, supporting innovation, enhancing production capacity, and creating significant employment opportunities.

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