Govt Receives ₹8,000 Crore Proposals Under ₹22,900 Crore Electronics Manufacturing Scheme

According to a report by Business Standard, India’s push for electronics self-reliance is gaining momentum as the Centre receives close to ₹8,000 crore worth of proposals under its ₹22,900 crore Electronics Components Manufacturing Scheme (ECMS). 

The scheme is designed to boost domestic production of critical electronic parts and assemblies through capital support and job-linked incentives.

₹8,000 Crore in Proposals Submitted to ECMS

Since the ECMS began accepting applications on May 1, the Ministry of Electronics and Information Technology has received around 100 proposals from Indian and foreign companies. These submissions total approximately ₹7,500 crore to ₹8,000 crore, targeting the development of electronic components and assembly units across the country. 

The government aims to start approving projects in batches from late August or early September, with a dedicated project management agency to be finalised soon.

The scheme covers the manufacturing of key components such as lithium-ion cells, printed circuit boards, display and camera modules, and non-surface mount devices. It also includes bare components like capacitors, resistors, fuses, inductors, and potentiometers used in mobile phones, tablets, and battery packs.

Incentive Structure Focuses on Jobs, Capital and Turnover

Unlike earlier schemes focused on incremental sales, ECMS introduces a more comprehensive incentive model. The support will be extended through three key methods: capital expenditure reimbursement, direct job creation, and turnover-based rewards. Applicants will need to specify employment plans, which will be a critical metric for qualifying and receiving incentives.
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Driving Self-Reliance in Electronics Ecosystem

The government sees this initiative as part of a broader strategy to complete India’s electronics manufacturing ecosystem from semiconductors to components and final products. India’s electronics output reached ₹9.52 trillion in FY24, growing at a CAGR of 17%, while exports touched ₹2.41 trillion, growing at 20% CAGR over the past 10 years.

Conclusion

The ECMS has drawn early interest from a wide pool of applicants, marking a strong start for India’s vision to localise its electronics supply chain. As the approval process begins, the scheme could significantly accelerate investment and job creation in high-tech manufacturing.

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