India’s drive to deepen its electronics supply chain has struck a strong chord. The Centre has received investment commitments of Rs 1.15 lakh crore from electronics parts manufacturers under its newly launched Electronics Component Manufacturing Scheme (ECMS).
The scheme, approved by the Union Cabinet in March 2025, carries a total outlay of Rs 22,919 crore over six years. It aims to boost domestic value addition by incentivising production of components such as display modules, camera sub-assemblies, printed circuit board assemblies (PCBA), and passive components like resistors and capacitors.
According to Union IT & Electronics Minister Ashwini Vaishnaw, the proposal inflow has surpassed expectations. Against a production target of Rs 4,56,500 crore, applicants have projected output of over Rs 10,34,000 crore during the scheme’s tenure. Similarly, the original employment estimate of 91,600 persons is now expected to scale to around 1,41,000 jobs.
Of the 249 applications received, nearly 60% are from MSMEs, underscoring broad industry participation. The government is currently vetting these proposals and plans to fast-track approvals, though specific timelines remain under review.
This component scheme differs from earlier electronics incentives, including PLI (Production Linked Incentive) for devices, in how subsidies are structured—linking them to parameters such as annual capital expenditure, production, and employment targets.
Why This Matters
- The commitment nearly doubles the scheme’s original investment target, signaling strong investor confidence.
- High MSME participation suggests democratization of manufacturing beyond just large players.
- If realized, the projected production and job numbers would mark a major leap for India’s electronics ecosystem.
With China historically dominant in component manufacturing, India’s ability to translate these commitments into industrial reality will be a litmus test for its ambition to become a global electronics hub.
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