The Electronics Component Manufacturing Scheme (ECMS) marks a significant step in India’s efforts to develop a robust electronics component manufacturing ecosystem and integrate the domestic industry with Global Value Chains (GVCs). Approved by the Union Cabinet on March 28, 2025, and notified on April 8, 2025, the scheme represents the natural progression of the Government’s strategic vision, building upon the momentum generated by initiatives, such as the Electronics Manufacturing Clusters (EMC), the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and the Production Linked Incentive (PLI) Scheme for mobile phones and information technology (IT) hardware. Its objective is to develop capacity and capabilities by attracting global and domestic investments across the value chain and to strengthen India’s position in the global electronics manufacturing landscape.
Financial Outlay, Duration, and Target Segments
The scheme was notified with a total outlay of Rs 22,919 crore and is to be implemented over a period of six years, with an optional gestation period of one year for turnover-linked incentives and a five-year period of capex-linked incentives. The differentiated fiscal incentives offered include turnover-linked incentive, a capex incentive, and a hybrid incentive combining both.
The target segments under the scheme span sub-assemblies, bare components, selected bare components, the supply chain ecosystem, and capital equipment along with telecom sub-assemblies. These include display module sub-assemblies, camera module sub-assemblies, non-surface-mount device (SMD) passive components, electro-mechanicals, multi-layer printed circuit boards (PCBs), Li-ion cells for digital applications, enclosures for mobile and IT hardware products, high-density interconnect (HDI), modified semi-additive process (MSAP) and flexible PCBs, SMD passive components, supply-chain of sub-assemblies and bare components, capital goods used in electronics manufacturing, and optical transceiver small form-factor pluggable (SFP).
Industry Response and Investment Commitments
The scheme has received an overwhelming response from domestic and international industry leaders. The Ministry of Electronics and Information Technology (MeitY) announced that it had received 249 applications representing investment commitments of about Rs 1,15,351 crore. This is nearly double the targeted Rs 59,350 crore. According to the Ministry, the proposals reflect India’s growing stature on the global stage, the increasing confidence of domestic industry including Micro, Small and Medium Enterprises (MSMEs), and their strong interest in contributing to a self-reliant electronics manufacturing ecosystem.
These applications represent projected production of Rs 10,34,700 crore, more than twice the initial projection of Rs 4,56,000 crore, and an estimated generation of 1,42,000 direct jobs, far above the target of 91,600. The application window remained open for three months from May 1, 2025, and was later extended until September 30, 2025.
Objectives of Deepening the Value Chain
The ministry highlighted that the core idea behind the scheme is to deepen the electronics manufacturing value chain in India and substantially increase domestic value-addition component. Thereafter, integration with GVCs would be the focus area. The huge response from industry reflects the collective commitment of industry partners to building a robust and globally competitive electronics manufacturing base. The approval process for eligible applicants has already been initiated.
Global Value Chains (GVCs) are critical in modern manufacturing, involving international collaboration across design, production, marketing, and distribution. They account for about 70 per cent of international trade, highlighting India’s urgent need to enhance its participation. Electronics, in particular, is pivotal with around 75 per cent of global electronics exports originating from GVCs
First Approvals and Regional Distribution
On October 27, 2025, the first approvals under the ECMS were announced, clearing seven projects worth Rs 5,532 crore. These projects are expected to generate 5,195 jobs and produce components valued at Rs 44,406 crore. The approved units are located in Tamil Nadu, Andhra Pradesh, and Madhya Pradesh, with Tamil Nadu receiving five of the seven projects, emerging as the hub in the initial phase. The Ministry described the response as unprecedented, reflecting India’s shift from assembling electronic goods to manufacturing their core components.
Key Companies and Project Details
The approved companies include Kaynes Circuits India Pvt. Ltd., SRF Ltd., Syrma Strategic Electronics Pvt. Ltd., and Ascent Circuits Pvt. Ltd.
Four of the seven projects were awarded to Bengaluru- Kaynes for manufacturing PCBs, camera module sub-assemblies, HDI boards, and laminates. Kaynes Circuits, headquartered in Mysore, will establish units in Chennai and Thoothukudi for these products, with nearly 87 per cent of its Rs 3,280 crore investment dedicated to PCBs and laminates. These facilities are expected to meet the entire domestic demand for polypropylene film and copper laminates, which are currently imported. These projects in Madhya Pradesh and Andhra Pradesh will be undertaken by SRF Ltd. and Syrma Strategic Electronics respectively, while Ascent Circuits in Hosur will invest Rs 991 crore to set up a facility for multi-layer PCBs.
Projected Outcomes and Production Capacities
According to the ministry, production from the approved plants is expected to meet
- 20 per cent of domestic PCB demand,
- 15 per cent of demand for camera module sub-assemblies, and
- 100 per cent of domestic requirement for copper-clad laminates.
An additional 60 per cent of production from these plants would be exported. Officials stressed the need for quick project execution and noted that incentive payouts are approved once production begins, encouraging firms to accelerate their timelines.
Incentive Structure and Eligibility Provisions
Under the ECMS, approved projects receive both turnover-and capex-linked incentives, subject to meeting annual incremental sales and investment targets. Failure to meet employment-generation targets results in a one percent deduction from eligible incentives. Capex-linked incentives apply to capital expenditure incurred within five years, with a five percent deduction if employment targets are not met.
Applicants must meet minimum revenue thresholds in Electronic System Design and Manufacturing (ESDM) or pure manufacturing.
For supply-chain and capital-equipment categories, applicants must have a net worth at least half of the proposed investment or provide a board resolution confirming their investment commitment and funding source. Eligible expenditures include plant, machinery, tools, dies, research and development, technology purchases and captive utilities. Freight, transport, insurance, and commissioning costs are capped at 7.5 per cent of base machinery cost while technology acquisition is capped at 10 per cent.
Importance of Approved Components
The first set of approvals covers a diverse range of high-value components essential to modern electronics:
- Camera module sub-assemblies are used across smartphones, drones, medical devices, robots, security cameras, tablets, laptops, automotive systems, and Internet of Things (IoT) devices.
- Multi-layer PCBs form the backbone of consumer electronics, industrial controls, automotive systems, ICT, telecommunication, medical devices, aerospace, and defence.
- HDI PCBs enable compact and high-performance designs for smartphones, tablets, wearables, aerospace and medical systems, owing to their microvias, finer tracks, and tighter spacing.
- Copper clad laminates serve as the base material for multi-layer PCBs and are used across automotive, consumer electronics, ICT, telecommunication, aerospace; and industrial manufacturing.
- Polypropylene film is a key material used in capacitors for consumer electronics, automotive applications, ICT, telecommunications, industrial systems, and computing.
Role of the Scheme in India’s Electronics Vision
The ministry noted that the scheme’s launch would advance India’s goal of building a US$ 500 billion electronics manufacturing ecosystem by 2030–31. Successive policies have steadily strengthened the sector and the ECMS is now positioned to complete the value-chain integration needed to make India a comprehensive global manufacturing hub. The scheme further reflects the domestic industry’s commitment to self-reliant electronics production and the growing global confidence in India’s stable policies and competitive advantages. The government aims to improve the overall domestic value addition in electronics manufacturing sector.
Expanding Electronics Manufacturing Landscape
The broader context of electronics manufacturing in India highlights the significance of the scheme. Electronics have emerged as the country’s third largest and fastest-growing export category in 2024–25, rising from the seventh position in 2021–22. In the first half of 2025–26, electronics exports stood at US$ 22.2 billion, maintaining strong growth momentum on course to become India’s second largest export category. Electronics production grew from Rs 1.9 lakh crore in 2014–15 to Rs 11.3 lakh crore in 2024–25, marking a six-fold increase, while exports rose eight-fold from Rs 38,000 crore to Rs 3.27 lakh crore. Over the past decade, the electronics manufacturing sector has created around 25 lakh jobs.
Transformation through Mobile Manufacturing
Mobile manufacturing played a decisive role in this transformation. Production rose from Rs 18,000 crore in 2014–15 to Rs 5.45 lakh crore in 2024–25, making India the world’s second-largest mobile phone manufacturer. Exports of mobile phones increased from Rs 1,500 crore in 2014–15 to Rs 2 lakh crore in 2024–25. In 2024, Apple alone exported iPhones worth Rs 1,10,989 crore, crossing the Rs 1 lakh crore mark with 42 per cent year-on-year growth. In the first five months of 2025–26, smartphone exports reached Rs 1 lakh crore. India has now achieved near-self-reliance in mobile production, moving from importing most devices to manufacturing almost all requirements domestically.
Way forward
The ECMS seeks to extend India’s electronics success by strengthening domestic value chains, integrating Indian firms with global supply networks and enhancing overall manufacturing capabilities. With investment commitments nearly twice the target, projected output more than double initial estimates and job creation far above expectations, the scheme has become central to India’s electronics strategy. The initial approvals signal India’s shift towards producing the components, materials and machinery that underpin all electronic devices. As these initiatives progress, India moves closer to becoming both a global component supplier and a fully integrated electronics manufacturing hub.
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