ECMS Scheme Attracts Investment Proposals Worth ₹16,000 Cr

The Indian government has received investment proposals worth ₹16,000 crore under the Electronics Component Manufacturing Scheme (ECMS), which was launched on May 1, 2025. With a total financial outlay of ₹22,805 crore, the scheme has attracted significant interest from major domestic and global players such as Tata Electronics, Dixon Technologies, and Foxconn. The aim of ECMS is to address the demand-supply gap in the electronic components sector and promote large-scale local manufacturing.

The government has already begun the approval process for the proposals, and the shortlisted projects are expected to be announced by September. Of the total allocation, ₹21,093 crore has been earmarked for sub-assemblies including camera modules, multi-layered printed circuit boards (PCBs), flexible PCBs, and other passive components. Another ₹1,712 crore is allocated for the manufacturing of parts used in these sub-assemblies and for capital goods required in electronics production.

Under ECMS, the government has defined four product categories. Display and camera modules are under Category A whereas basic components such as non-surface mount devices (non-SMD), lithium-ion cells, and enclosures are under Category B. Flexible PCBs and surface-mount passive components are covered in Category C and capital goods and components used across Categories A to C are under Category D. The application window for Categories A, B, and C is open for three months from May 1, whereas Category D is open for two years.

This scheme is expected to play a crucial role in strengthening India’s electronics manufacturing ecosystem, reducing import dependency, and positioning the country as a global hub for component manufacturing.

Source: The Economic Times