Electronics Components Manufacturing Scheme

The Centre has approved 22 new projects across eight states under the Electronics Components Manufacturing Scheme (ECMS) to strengthen India’s electronics supply chain.

Key Highlights of the Projects Announced under the ECMS

• Scale of Approval: 22 projects cleared in the third tranche, covering 11 target electronic component segments.
• Investment & Output: Projects entail investments of ₹41,863 crore, with expected production worth ₹2.58 lakh crore.
• Employment Generation: Around 34,000 direct jobs are expected, supporting skilled manufacturing employment.
• Sectoral Coverage: Components will cater to mobile phones, telecom, consumer electronics, strategic electronics, automotive electronics, and IT hardware.
• Geographical Spread: Projects are distributed across Andhra Pradesh, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Tamil Nadu, Uttar Pradesh, and Rajasthan.

About the Electronics Components Manufacturing Scheme

• Introduction: It is India’s first dedicated Production-Linked Incentive (PLI) scheme focused exclusively on passive electronic components, aimed at building a resilient domestic component ecosystem.
• Objective: To attract global and domestic investments, integrate India’s electronics industry with Global Value Chains (GVCs), and reduce import dependence.
• Launch Year: 2025
• Nodal Body: Implemented by the Ministry of Electronics and Information Technology (MeitY).
• Components Covered:
  • Focuses on passive components such as resistors, capacitors, speakers, microphones, relays, switches, connectors, and special ceramics.
  • Active components, including semiconductors, fall under the India Semiconductor Mission (ISM).
• Incentive Structure: Offers turnover-linked, capex-linked, and hybrid incentive models, with incentives ranging from 1–10%.
• Tenure: Scheme tenure is six years (FY2025-26 to FY2031-32), including a one-year gestation period, with mandatory employment generation for applicants.

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Significance of the New Projects

• Strengthening Supply Chains: Reduces India’s reliance on imported electronic components and enhances supply chain resilience.
• Boost to High-Value Manufacturing: Supports the growth of advanced electronics manufacturing aligned with Atmanirbhar Bharat.
• Global Competitiveness: Encourages local sourcing, quality standards, and design capabilities, positioning India as a global electronics manufacturing hub.

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