Insights from MeitY officials and industry experts outlined how ECMS will help India build deep, competitive supply chains and become a global electronics manufacturing powerhouse.
India’s electronics sector is on a growth trajectory, and a recent ELCINA webinar spotlighted the promising future shaped by the newly launched Electronics Components Manufacturing Scheme (ECMS). Mr. Nirmod Kumar, Director, Ministry of Electronics & IT (MeitY) sharedThe Ministry’s perspective and mentioned a six-year rollout and a budget of ₹22,805 crore, the scheme is poised to revolutionize domestic manufacturing, reduce import dependency, and attract substantial investments across the electronics value chain.
Backed by MeitY, ECMS offers a powerful mix of incentives—turnover-linked, capital expenditure-based, and hybrid—targeted at critical segments such as sub-assemblies, bare components like multilayer PCBs and Li-ion cells, and essential supply chain infrastructure. Importantly, the scheme excludes contract manufacturing and demands strict compliance, including quarterly reviews and employment benchmarks. Failure to meet employment targets can slash incentives by up to 5%.
The session helped to gain clarity on the eligibility criteria and required documentation needed to apply, along with a step-by-step overview of the application process and important timelines. The session will also cover the key benefits of the scheme—from financial incentives to policy support—and outline strategies for maximizing success under ECMS.
The session was followed by a detailed presentation on the scheme’s major incentives and components coverage, starting with insights from Mr. Abhishek Jain, Partner and National Head – Indirect Tax, KPMG in India, and Ms. Sonam Bhandari, Chartered Accountant, BBSR & Associates LLP. The session also highlighted India’s electronics market potential: domestic production grew at a CAGR of over 15% from FY21 to FY24, exports hit $35 billion, and total market value reached $169 billion. However, with imports still at $89 billion, bridging the trade gap remains key. The ECMS is a step in that direction, pushing for increased local capacity and deeper supply chain integration.
With an overview of fiscal incentives and threshold criteria presented by Mr. Saurabh Agarwal, Partner, and Mr. Sukhpal Singh, Director, from EY Tax and Regulatory Services.Government incentives—central and state combined—can help manufacturers recoup more than 100% of project costs, making India one of the most lucrative destinations for electronics production. GST and customs duty benefits add to the attractiveness. Participants of the webinar walked away with a clearer understanding of ECMS eligibility, application procedures, and its role in the broader “Make in India” push. As India competes with global giants like China, Taiwan, and South Korea, this policy initiative is expected to drive technology transfer, create jobs, and fortify India’s position as a global electronics manufacturing hub.
