Ashwini Vaishnaw launched the Electronics Component Manufacturing Scheme (ECMS), aiming to boost India’s electronics ecosystem with ₹593.5 billion investment, job creation, and global growth.
On Saturday, the Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, launched the guidelines and portal for the new Electronics Component Manufacturing Scheme (ECMS).
The launch, attended by over 200 participants, included senior government officials, industry leaders, financial institutions, and global representatives. A key highlight of the event was the selection of Sarvam AI to build India’s first indigenous AI foundational model, further strengthening the country’s AI capabilities.
In his address, Union Minister Ashwini Vaishnaw outlined India’s evolving electronics manufacturing journey, from finished products to components and materials. He highlighted a five-fold increase in production and six-fold export growth, with a CAGR of over 20% for exports.
Emphasising innovation and quality, Vaishnaw stressed the importance of design teams and Six Sigma standards. He also discussed India’s AI advancements, with 350 datasets uploaded to AI Kosh, expressing his confidence that ECMS will attract global significant investment.
The ECMS, with a budget outlay of ₹229.19 billion, will be implemented over six years, from FY2025- 26 to FY2031- 32, and offers differentiated fiscal incentives, including turnover-linked, capital expenditure (Capex)-linked, and hybrid incentives. This incentive structure encourages investment across the entire supply chain, including subassemblies, bare components, and capital equipment crucial for electronics manufacturing.
It aims to create a comprehensive manufacturing ecosystem, supporting industries like power and automobiles.
Another significant feature of the scheme is its focus on performance-based incentives, with a first-come, first-served approach. According to the Ministry of Electronics and Information Technology (MeitY), this encourages proactive participation and efficiency among applicants.
The scheme also includes simplified guidelines to ensure clarity and ease of compliance for stakeholders, to foster a conducive environment for business operations.
Approved by the Union Cabinet in April 2025, it aims to attract an investment of ₹59,350 crore and generate almost ₹4.56 trillion in production, with 91,600 direct jobs and many indirect employment opportunities.
The scheme covers four target segments:
- Segment A: sub-assemblies
- Display module sub-assembly: ₹2.5 billion investment, turnover-linked incentives ranging from 4% to 1% over six years.
- Camera module sub-assembly: ₹2.5 billion investment, turnover-linked incentives ranging from 5% to 2% over six years.
- Segment B: bare components
- Non-SMD passive components: ₹500 million investment, turnover-linked incentives ranging from 8% to 4% over six years.
- Electro-mechanicals: ₹500 million investment, turnover-linked incentives ranging from 8% to 4% over six years.
- Multi-layer PCBs: ₹500 million investment, turnover-linked incentives ranging from 6% to 4% over six years (for ≤ 6 layers); for ≥ 8 layers, 10% to 5%.
- Li-ion cells for digital applications: ₹5 billion investment, turnover-linked incentives ranging from 6% to 4% over six years.
- Enclosures for mobile and IT hardware products: ₹5 billion crore investment, turnover-linked incentives ranging from 7% to 3% over six years.
- Segment C: selected bare components
- HDI/MSAP/Flexible PCB: ₹10 billion investment, turnover-linked incentives ranging from 8% to 4% over six years, with a 25% Capex incentive.
- SMD passive components: ₹2.5 billion investment, turnover-linked incentives ranging from 5% to 3% over six years, with a 25% Capex incentive.
- Segment D: supply chain ecosystem and capital equipment
- Supply chain of sub-assemblies and bare components: ₹100 million investment, 25% Capex incentive.
- Capital goods used in electronics manufacturing: ₹100 million investment, 25% Capex incentive.
The scheme will accept applications from 1st May 2025 through the online portal. The application window for target segments (A), (B), and (C) will be open for three months, while target segment (D) will have a two-year application window.
The event also highlighted the success of the Production-Linked Incentive (PLI) schemes rolled out by MeitY, which industry leaders have praised for their smooth implementation and prompt disbursement of incentives.
A minute of silence was observed at the event in memory of the victims of the recent terrorist attack in Pahalgam.
