India Sees ₹1.15 Trillion Electronics Boost, Says IT Minister

Following the closure of the ECMS application window on Tuesday, India’s electronics manufacturing scheme has exceeded expectations, with ₹1.15 trillion in proposals, says Minister Vaishnaw.

India’s Electronics Component Manufacturing Scheme (ECMS) has drawn investment proposals worth ₹1.15 trillion, nearly double the scheme’s original target, Union Minister for Electronics and IT Ashwini Vaishnaw announced on Thursday. The applications also signal production and employment figures far exceeding initial projections.

The ECMS application window officially closed on 30 September, though submissions for the capital equipment segment remain open. Early applicants will be prioritised under the first-come, first-served selection process.

The scheme had set an initial investment target of ₹593.5 billion. Current proposals estimate production at ₹10.34 trillion, compared with the original target of ₹4.56 trillion. Employment generation is expected to reach 141,000 jobs, surpassing the scheme’s target of 91,600 jobs. Incentive outgo is projected at ₹414.68 billion, nearly twice the planned ₹228.05 billion.

Electronics and IT Secretary S Krishnan highlighted that the surge in proposals reflects strong industry confidence.

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Meanwhile, for the first time, proposals have emerged in specialised segments such as SMD passives, laminates, flexible PCBs, anodes, and capital equipment. Vaishnaw noted that almost all industry players have started establishing design capabilities and teams, with about 60% of applications coming from MSMEs. He added that these components are expected to meet domestic demand and compete in global markets.

The minister urged states to capitalise on the opportunity presented by the electronics sector. He highlighted the government’s next focus: indigenising raw materials essential for electronics and semiconductor manufacturing, including ultra-pure materials.

ECMS, launched to boost local electronics production, has now surpassed expectations on all major parameters. Reports say the scheme could significantly strengthen India’s position in the global electronics supply chain and support the government’s ‘Make in India’ and self-reliance objectives.

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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