Government Received 70 Applications Under ECMS, 80% are from MSMEs

As many as 70 companies have applied under the Electronics Component Manufacturing Scheme (ECMS) and out of all around 80 per cent of them are from Micro, Small, and Medium Enterprises (MSMEs), Union Minister Ashwini Vaishnaw told PTI. The scheme, which was opened for applications on May 1, has garnered a strong response in just 15 days. While the names of applicants have not been officially disclosed, however, industry sources earlier indicated interest from major players like Tata Electronics, Dixon Technologies, and Foxconn.

The ECMS aims to boost domestic production of electronic components and reduce India’s reliance on imports. The scheme is a crucial part of India’s electronics manufacturing push and is designed to address the growing gap between demand and local supply. According to some industry associations, this demand-supply gap is projected to reach USD 248 billion (about Rs 21 lakh crore) by 2030.

Of the total outlay of Rs 22,805-crore, Rs 21,093 crore has been allocated to support the manufacturing of sub-assemblies such as camera modules, multi-layered printed circuit boards (PCBs), and passive components while Rs 1,712 crore is for components used in sub-assemblies and capital equipment for electronics production. The scheme divides eligible items into four categories—A, B, C, and D—based on their manufacturing complexity and strategic importance.

Applications for categories A, B, and C are open for three months, while D category components, including capital goods, will be eligible for two years. The initiative is part of the broader Make in India vision to boost self-reliance in electronics.

Source: The Economic Times