India Unveils ₹22,919 Cr Scheme to Boost Electronics Component Manufacturing
Photo Credit: @AshwiniVaishnaw
In a significant move aimed at fortifying India’s domestic electronics manufacturing ecosystem and reducing dependence on imported components, Union Minister Ashwini Vaishnaw on Tuesday announced the launch of the Electronics Component Manufacturing Scheme (ECMS) with a substantial outlay of ₹22,919 crore. This scheme seeks to bolster the production of sub-assemblies, bare components, and capital equipment within the country by incentivising both global and Indian investors. It also aligns closely with the government’s broader Atmanirbhar Bharat vision and the objective of making India a trusted node in global electronics value chains.
“We anticipate the scheme will be ready to roll out within the next two to three weeks. Following that, MeitY will begin inviting proposals from companies ready to manufacture components in India under this initiative,” Vaishnaw said while addressing the press conference.
He further added that the Ministry will finalise the detailed implementation guidelines within the coming weeks after thorough consultation with stakeholders in the industry.
The scheme introduces a three-pronged incentive structure—Turnover-Linked, Capex, and Hybrid—designed to suit the requirements of different product segments. It covers critical areas such as display and camera modules, non-SMD passive components, electro-mechanicals, HDI/MSAP/flexible PCBs, lithium-ion cells for digital applications, and enclosures.
“In recent years, we have witnessed a remarkable expansion in India’s manufacturing capabilities. Today, we have over 400 units of varying sizes operating across the country. Like many nations that progressed in electronics manufacturing, India began with final product assembly and is now advancing into core component manufacturing. This is a key milestone in that journey,” the minister remarked.
According to the gazette notification, the scheme also includes incentives for capital equipment and key supply chain parts required in electronics manufacturing. Both greenfield and brownfield investments are eligible to apply, with a separate application required for each product segment. Incentives will be linked to performance benchmarks such as incremental sales, investments, and employment generation, with FY 2024–25 set as the base year.
The scheme is expected to deepen India’s integration into global value chains (GVCs), stimulate innovation, and create thousands of jobs in the rapidly growing Electronics System Design and Manufacturing (ESDM) sector. Implementation will be overseen by a dedicated Project Management Agency (PMA) under the supervision of an inter-ministerial Governing Council chaired by the Secretary of MeitY. Detailed Scheme Guidelines will be released separately, post approval by the Minister of Electronics and IT, the notification read.
The scheme is part of a series of policy interventions that have led to a fivefold increase in electronics production—from ₹1.90 lakh crore in FY 2014–15 to ₹9.52 lakh crore in FY 2023–24. However, the sector continues to face a challenge due to its heavy reliance on imported components, a gap this new scheme is strategically designed to address.
