Govt to clear more ECMS proposals soon, investment seen at ₹11,150 crore

The Centre is likely to approve five to seven more applications under the Electronics Component Manufacturing Scheme, with cumulative investment of nearly ₹11,150 crore

The Ministry of Electronics and Information Technology (MeitY) is likely to soon clear another round of five to seven applications under the Electronics Component Manufacturing Scheme (ECMS), with a cumulative investment of nearly ₹11,150 crore, a senior government official said.

 

The total estimated production from these units is likely to be up to ₹29,000 crore, with expected direct employment generation for 19,000 people, the official said, adding that these projects are expected to go live in 2026.

 

“With these projects, we will have spent close to 80-85 per cent of the funds allocated for ECMS. Depending on the need, more applications will be approved as and when such projects come,” the official said.

 

The new units could be in the areas of printed circuit board, lithium-Ion cell, optical transceivers, aluminium extrusions, anode materials, and copper-clad laminate manufacturing, another official said.

 

Under the ECMS, launched in April 2025, MeitY has approved 46 applications to date, with a cumulative investment of ₹54,567 crore. These projects are estimated to generate ₹3.67 trillion in production and are likely to create direct employment for nearly 51,000 people.

 

These 46 projects, spread across 11 states, will produce electronics components such as printed circuit boards, capacitors, connectors, mobile phone and other device enclosures, lithium-Ion cells, camera and display modules, optical transceivers, aluminium extrusions, anode materials, and copper-clad laminates. All of these components are used in the manufacturing of products such as mobile phones, laptops, televisions, computer displays, and servers.

 

In the Union Budget for FY27, Finance Minister Nirmala Sitharaman announced that the outlay for ECMS was being increased to ₹40,000 crore from ₹22,919 crore that was initially planned.

 

The increased outlay for ECMS is in line with the government’s intent to position India as a critical supplier of raw materials as well as finished goods in the global electronics supply chain.

 

In 2025-26, electronics are likely to remain the third-largest and fastest-growing export category from India, according to one of the officials quoted above.

 

“In 2024-25, the total electronics production from the country was roughly ₹11 trillion, out of which exports were ₹3.27 trillion. Under ECMS alone, 141,801 direct jobs are likely to be created during the scheme's six-year tenure, compared with our estimate of 91,600. These direct jobs will have a multiplier impact on indirect jobs,” the official said.