Electronics Manufacturing Component Scheme

The Government of India has approved the first batch of seven projects under the Electronics Components Manufacturing Scheme (ECMS).

About Electronics Components Manufacturing Scheme (ECMS)

• The ECMS is a flagship initiative under the Ministry of Electronics and Information Technology (MeitY).
• It aims to promote domestic manufacturing of electronic components and sub-assemblies that are currently imported, thereby strengthening the electronics manufacturing ecosystem in India.
• Linkages: The scheme complements other initiatives such as the Production Linked Incentive (PLI) Scheme, the India Semiconductor Mission (ISM) and Scheme for Promotion of Manufacturing of Electronic Components & Semiconductors (SPECS).
• Its objective is to build a self-reliant and export-oriented electronics value chain covering devices, chips, components, and materials.
• Target segments: The scheme classifies manufacturing into several “target segments”. For example:
  • Sub-assemblies: display modules, camera modules. 
  • Bare components: non-SMD passive components, electromechanical components, multi-layer PCBs, Li-ion cells (for digital applications) etc. 
  • Selected bare components: HDI/flexible PCBs, SMD passive components etc.
  • Supply chain ecosystem & capital equipment: manufacturing of machinery/equipment used in electronics, and ecosystem support units.
• Incentive structure: The scheme offers differentiated fiscal incentives:
  • Turnover-linked incentive (based on incremental sales) 
  • Capital expenditure (Capex)-linked incentive (for investment in plant/machinery) 
  • Hybrid model (combination) for certain segments. 
• Duration:  6 years (FY2025-26 to FY2031-32) with gestation period

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