Electronics component plan gets ₹1.15 trillion proposals, says govt

249 applications received so far, approvals expected soon

The government has received investment proposals totalling ₹1.15 trillion from 249 companies under the ₹22,919 crore Electronics Component Manufacturing Scheme (ECMS), Union Minister for Electronics and Information Technology Ashwini Vaishnaw said on Thursday. 

“The trust that the world has developed for India over the past 11 years is showing in the form of investment, production, and employment commitments by global companies,” Vaishnaw said. 

The first approvals under the ECMS are expected to be issued within the next few months, with production likely to begin before the end of 2026, a senior government official added. 

Of the 249 applications received so far, the Ministry of Electronics and Information Technology (Meity) has received 87 from companies, including micro, small, and medium enterprises (MSMEs), seeking to manufacture electro-mechanical components. Another 22 companies, proposing an investment of ₹8,642 crore, have applied to produce display module sub-assemblies in India, while 14 companies, with a proposed investment of ₹6,205 crore, aim to set up camera module sub-assembly units. 

 

As many as 43 applications have been received from various companies, including MSMEs, for the manufacturing of PCBs. Meanwhile, 16 companies have proposed investments of ₹35,813 crore to manufacture enclosures for mobile devices, IT hardware, and related products, Vaishnaw noted. 

“I would say about 60 per cent of the applications are from MSME players. That is what is very heartening because when the smaller players get confidence about the programme, about the policy, that is a big game changer,” he said.  

Against a production target of ₹4.56 trillion under the ECMS, the 249 companies have provided production assurances exceeding ₹10 trillion, the minister said, adding, “one single company has proposed to invest ₹22,000 crore, which is the highest ever in these segments.” 

Notified by the Union government on April 8 and approved by the Cabinet on May 1, the six-year ECMS scheme allows a gestation period of up to one year for firms. Its aim is to develop a robust component manufacturing ecosystem by attracting both global and domestic investments across the electronics supply chain, thereby increasing domestic value addition for electronics. Currently, domestic value addition in India is  estimated at 15-18 per cent.

 

Unlike earlier production-linked incentive (PLI) schemes, the ECMS will offer incentives based on factors such as job creation, capital expenditure, and turnover. For instance, companies setting up display and camera module sub-assemblies with cumulative investments of up to ₹250 crore can receive incentives of up to 5 per cent in the first year of production. Companies manufacturing multi-layer PCBs with more than eight layers may be eligible for incentives of up to 10 per cent in the first production year. 

While applications for most electronics components closed on September 30, submissions for high-density interconnect (HDI), modified semi-additive process (MSAP), and flexible PCBs will remain open until April 2027. Firms investing ₹1,000 crore in HDI, MSAP, and flexible PCBs, or ₹250 crore in other SMD passive components such as resistors, capacitors, inductors, transformers, and fuses, will be eligible for capital expenditure incentives of up to 25 per cent. 

With the ECMS now entering its final stages, the government aims to complete the trifecta of semiconductor manufacturing, component production, and finished electronics such as mobile phones, laptops, and IT hardware. Electronics production and exports, particularly of mobile phones, have grown sharply over the past decade. Government data shows production has expanded at a compound annual growth rate (CAGR) of 17 per cent, while exports have risen at 20 per cent CAGR over the same period.

 

“The deepening of the ecosystem and the increase in domestic value addition are dependent upon the scale of manufacturing. ECMS is the natural progression of the scale and capability we have built in mobile phones and electronics manufacturing,” said Pankaj Mohindroo, chairman of the India Cellular and Electronics Association.