Electronics Manufacturing Boom: Centre Receives ₹8,000 Crore in Proposals Under ECMS

India’s electronics ecosystem is gearing up for significant growth as the central government has received proposals worth ₹7,500 – 8,000 crore under the newly launched Electronics Components Manufacturing Scheme (ECMS). These proposals signal robust interest from both domestic and international entities, aiming to substantially enhance India’s position in electronic component production and assembly.

Scheme Launch & Application Overview:

The ECMS officially began accepting applications on May 1, 2025, with a window open for three months.

• In this initial period, around 100 proposals were submitted by various Indian and foreign firms.
• The total proposed investment spans approximately ₹7,500 – 8,000 crore.
• These applications target setting up manufacturing units for critical components-such as PCBs, non‑SMD parts, display & camera modules, and lithium‑ion cells.

Scheme Scale & Approval Timeline:

• The ECMS carries an outlay of ₹22,911 crore, designed to run over six years starting this financial year.
• Applications are currently under review. Officials expect batch-wise approvals starting from late August or early September 2025, and a project management agency will soon be appointed to oversee implementation.

Incentive Structure: Beyond Sales Growth.

ECMS marks a strategic shift from past sales-based incentives towards a more holistic approach:

1. Capital expenditure support – reimbursing investments in facilities and equipment.
2. Job-linked incentives – companies are required to declare number of direct jobs generated; rewards will be proportional to employment impact.
3. Turnover-based incentives – tied to revenues generated in India.

Union Minister Ashwini Vaishnaw highlighted that the employment creation metric will play a crucial role in incentive allocation.

Strategic Goals: Strengthening India’s Electronics Ecosystem.

The ECMS is a core component of India’s ambition to achieve self-reliance in electronics, spanning the entire value chain from semiconductors to final products.

• In FY24, India’s electronics production stood at ₹9.52 trillion, growing at a CAGR of 17%, while exports reached ₹2.41 trillion, increasing at 20% CAGR over the past decade.
• The aim now is to expand domestic manufacturing capacity for components such as capacitors, resistors, inductors, multilayer PCBs, and more – used in smartphones, laptops, battery systems, and IoT devices.

What Lies Ahead:

• Evaluation in progress: All applications are being vetted rigorously.
• Phase‑wise rollout: Central approvals expected in late Aug–Sept 2025.
• Dedicated project oversight: A management agency will be appointed to ensure timely execution.