Amid rising demands and investments, the electronics ministry is pushing for higher ECMS funding, signalling deeper commitment to domestic component manufacturing ahead of the Union Budget.
The Ministry of Electronics and Information Technology (MeitY) is seeking a higher budget allocation for its flagship Electronic Components Manufacturing Scheme (ECMS) in the upcoming Union Budget,
According to a report by The Economic Times, if approved, ECMS could become the largest part of MeitY’s demand for grants, showing the government’s growing focus on strengthening electronics manufacturing.
The push for additional funds follows strong interest from the industry. Applications under the scheme have crossed expectations, increasing the estimated incentive outgo. Officials said the response shows rising confidence among both Indian and global manufacturers in India’s electronics policy framework.
The ECMS aims to boost domestic production of key electronic components, including semiconductors, passive components and sub-assemblies. By supporting component manufacturing, the scheme seeks to reduce import dependence and improve value addition within the country. It also supports sectors such as smartphones, consumer electronics, automotive electronics and industrial equipment.
Till date, the government has cleared 22 ECMS projects worth ₹418.63 billion. In November 2025, the government approved the second ECMS batch investments worth ₹71.72 billion.
MeitY believes higher funding is necessary to sustain momentum. Officials warned that limited allocation could force the government to restrict incentives, slowing investments and affecting India’s competitiveness. This is especially critical as companies worldwide look to diversify supply chains.
Final decisions will be taken by the finance ministry. However, electronics is expected to remain a budget priority. As for now, the electronics industry wait eagerly for the 1st of February.
