India’s ambitious Electronics Component Manufacturing Scheme (ECMS) is off to a robust start, with the Centre receiving investment proposals worth ₹1.15 trillion from 249 companies, Union IT Minister Ashwini Vaishnaw announced on Thursday. The proposals reflect strong global and domestic confidence in India’s electronics manufacturing capabilities, with several major players now eyeing component production in India.
The ₹22,919 crore ECMS, approved earlier this year, is part of the government’s broader strategy to reduce import dependency and create a resilient domestic electronics supply chain. Production under the scheme is expected to begin before the end of 2026, with initial approvals likely to be rolled out in the coming months.
MSMEs Take the Lead in Component Manufacturing
Of the 249 proposals submitted, nearly 60% are from micro, small, and medium enterprises (MSMEs) — a development Vaishnaw described as “heartening” and a “game-changer.”
These include:
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87 applications for electro-mechanical components
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43 applications for printed circuit boards (PCBs)
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22 applications for display module sub-assemblies (₹8,642 crore)
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14 applications for camera module sub-assemblies (₹6,205 crore)
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16 applications to manufacture enclosures for mobile and IT hardware (₹35,813 crore)
One large firm alone has proposed to invest ₹22,000 crore — the highest-ever commitment in these segments.
₹10 Trillion+ in Production Assurances
The companies have committed to producing more than ₹10 trillion worth of components, far exceeding the scheme’s target of ₹4.56 trillion in output. The scheme will offer incentives based on a variety of performance metrics including job creation, capital expenditure, and turnover — marking a shift from the flat PLI (production-linked incentive) models seen previously.
Incentive examples include:
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Up to 5% for display and camera modules with investments up to ₹250 crore
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Up to 10% for multi-layer PCBs with more than eight layers
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25% capex incentives for firms investing ₹1,000 crore in high-density interconnect (HDI), modified semi-additive process (MSAP), and flexible PCBs
Building the Complete Value Chain
The ECMS complements the government’s earlier semiconductor and final electronics assembly initiatives, forming a “trifecta” approach to build India’s full electronics manufacturing stack — from chips to components to finished goods. Applications for most components closed on September 30, though those for HDI and flexible PCBs remain open until April 2027.
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“The deepening of the ecosystem and the increase in domestic value addition are dependent upon the scale of manufacturing,” said Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA). “ECMS is a natural progression of the capabilities we have already built.”
Currently, India’s value addition in electronics stands at around 15–18%. The government hopes the ECMS will help push that figure significantly higher in the next few years.
A Decade of Growth Backed by Policy
The electronics sector has seen significant momentum in India over the past decade. Government data indicates:
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Production has grown at a CAGR of 17%
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Exports have risen at a CAGR of 20%
The ECMS is expected to further accelerate this trend by creating a robust base for component manufacturing and reducing import dependency across critical parts of the electronics value chain.
With incentives tailored for both MSMEs and large players, the scheme is not just about attracting investment — it’s about ensuring lasting domestic capability and global competitiveness.