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Government Extends Application Deadline for Electronics Manufacturing Scheme to September

Written by: Team Angel OneUpdated on: 1 Aug 2025, 11:15 pm IST
The Government extends the ECMS application deadline to September 30, 2025, aiming to boost electronics manufacturing despite rare earth supply challenges.
Government Extends Application Deadline for Electronics Manufacturing Scheme to September
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The Ministry of Electronics and Information Technology (MeitY) has extended the application deadline for the Electronics Component Manufacturing Scheme (ECMS) to September 30, 2025, as per news reports. The original window was set to close on July 31, 2025. The extension was issued with the approval of Union IT Minister Ashwini Vaishnaw.

Over 110 Applications Received So Far

As per reports, the application window opened on May 1, 2025, and over 110 companies have already submitted proposals. MeitY had been considering the extension after receiving a positive response and requests from companies looking for more time.

Scheme Value and Incentives

ECMS has a total outlay of ₹22,919 crore. The scheme is expected to bring in ₹59,350 crore in investments and production worth ₹4,56,500 crore over 6 years. Incentives will be disbursed in phases and are linked to turnover, capital expenditure, or a combination of both.

Employment and Sector Goals

The scheme is expected to create 91,600 direct jobs. It supports the manufacturing of a range of electronics components, including multi-layer PCBs, Li-ion cells, resistors, capacitors, display modules, and camera sub-assemblies. The focus is on building a local supply chain beyond semiconductors.

Rare Earth Supply Concerns

As per news reports, some companies have reported difficulties in meeting Year 1 targets due to shortages of rare earth elements. This follows China’s restrictions on the export of 7 critical minerals after U.S. tariffs were announced. These metals are essential for producing EVs and consumer electronics in India.

The government also recently amended SEZ rules to reduce the minimum land requirement for electronics-related manufacturing from 50 hectares to 10 hectares. This applies to multiple components, including battery and camera sub-assemblies and IT hardware.

Read More: India's Rare Earth Magnet Imports Soar to $291 Million in FY25 Amid China Ban: SBI Report!

Conclusion

The extended deadline allows more companies to participate in ECMS. While global supply issues remain, the scheme continues to draw interest from the electronics industry as part of the broader domestic manufacturing push.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Aug 1, 2025, 2:08 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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