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Electronics Components Manufacturing Scheme (ECMS) Notified: MeitY launched the ECMS to boost India’s position as a global electronics manufacturing hub (April 8, 2025).
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Focus on Passive Components: Scheme targets manufacturing of passive electronic components like resistors, capacitors, connectors, speakers, sensors, etc. Active components are covered under the India Semiconductor Mission (ISM).
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Incentive Structures: Offers three incentive models: turnover-linked, capex-linked, and hybrid (combination of both) to suit varying investment needs.
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Support for Capital Equipment: The scheme supports the design and manufacturing of capital equipment used in electronics production.
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Horizontal Initiative: Benefits span multiple sectors like consumer electronics, automobiles, medical devices, creating a multiplier effect.
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Employment Generation: Mandatory requirement for all applicants, promoting job creation.
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Growth in Electronics Sector: Electronics production has grown five-fold, and exports six-fold in the last decade, with smartphone exports exceeding ₹2 lakh crore in the last financial year.
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Ecosystem Development: Over 400 production units now exist, and the sector is evolving from finished goods to deep component manufacturing, increasing value addition.
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Industry Trends: India’s electronics manufacturing has progressed from finished goods to sub-assemblies, now focusing on deep component manufacturing.
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Investment and Gestation: Acknowledges higher investment needs and longer gestation periods for component manufacturing.
