The Government of India has unveiled the Electronics Component Manufacturing Scheme (ECMS), a ₹22,919 crore initiative designed to strengthen India’s electronics manufacturing capabilities and deepen its integration into global value chains. The scheme was formally launched on April 26 by Union Minister Ashwini Vaishnaw, along with the release of operational guidelines and the ECMS portal.
Running from FY 2025-26 to FY 2031-32, the scheme aims to attract large-scale investments, promote innovation, and create a self-sustaining electronics ecosystem that supports sectors beyond electronics, including automotive, power, and industrial manufacturing.
“Eighty to eighty-five per cent of the value chain is of finished goods. Now, the next phase focuses on deepening component and material manufacturing,” Ashwini Vaishnaw said during the launch event.
Scaling Production and Exports
Vaishnaw noted the sector’s strong momentum over the last decade. Electronics production has multiplied fivefold, and exports have grown over sixfold, with export CAGR exceeding 20% and production CAGR over 17%. Key segments such as mobile phones, servers, laptops, and IT hardware have driven this rapid expansion.
The minister highlighted that India’s manufacturing journey, which initially focused on assembling finished goods, has now evolved into module production, component manufacturing, and materials innovation—moving toward a full-stack electronics ecosystem.
ECMS: Focus on Quality, Innovation, and Employment
The ECMS is designed as a horizontal scheme, offering hybrid incentives linked to both production outputs and employment generation. It provides support not only for components and subassemblies but also for capital equipment and machinery, helping develop a complete, competitive supply chain.
Vaishnaw emphasized the importance of building indigenous design capabilities and achieving Six Sigma quality standards, warning that companies falling short of quality benchmarks would be “cut short” from scheme benefits.
The guidelines have been crafted to be simple, transparent, and business-friendly, with a first-come, first-serve model to ensure efficiency and predictability for applicants.
Building Synergies with AI and Tech-Driven Growth
In addition to manufacturing, Vaishnaw spoke about India’s parallel advances in data-driven technologies and AI. He cited developments such as:
350 datasets hosted on AI Kosh
Four AI tools developed by IITs set to launch soon
New techno-legal frameworks to support AI-driven electronics innovation
The event also marked the announcement that Sarvam AI has been selected to build India’s first native AI foundational model, a milestone in India’s growing AI ecosystem.
Strong Industry and Global Interest
Over 200 stakeholders participated in the ECMS launch event, including senior government officials, state representatives, industry leaders, financial institutions, and international observers. Industry voices welcomed MeitY’s proactive management of earlier schemes, citing timely incentive disbursals as a major factor in building confidence.
The Electronics Component Manufacturing Scheme signals India’s next big leap toward becoming a global manufacturing powerhouse, aligning with the broader vision of Viksit Bharat 2047.
