MeitY Seeks Bigger Budget Push for Electronics Components Manufacturing

The Ministry of Electronics and Information Technology (MeitY) is seeking a higher budget allocation for its flagship Electronics Components Manufacturing Scheme (ECMS) in the upcoming Union Budget, according to government officials. Due to strong industry interest, ECMS is expected to become the largest part of MeitY’s overall budget demand.

Official estimates show that the total incentive outgo under the scheme has risen to about Rs 41,468 crore, which is nearly 1.8 times higher than the government’s initial estimate of Rs 22,805 crore. The scheme has a six-year duration starting from the current financial year, including a possible one-year gestation period, with funds to be released in phases by the finance ministry.

Officials said the scheme has received strong response from companies and is seen as a key pillar for strengthening India’s electronics manufacturing ecosystem, going beyond just component production. In the previous budget, MeitY’s allocation increased sharply by 48.1% to Rs 26,026 crore for FY26, compared to revised estimates of Rs 17,566.3 crore in FY25, mainly driven by support for electronics and semiconductor manufacturing. So far, investment commitments under ECMS have reached Rs 1,15,351 crore, almost double the original target. Over the next six years, the scheme is expected to generate production worth Rs 10.34 lakh crore and create more than 1.41 lakh direct jobs, exceeding earlier projections.

Under the scheme, 46 projects have already been approved across three phases, involving investments of Rs 54,567 crore and targeted production of Rs 3.67 lakh crore. ECMS offers turnover-linked, capex-linked, and hybrid incentive models to support domestic manufacturing, with penalties if employment targets are not met. More project approvals are expected in the future.

Source: The Economic Times