New Delhi— India’s electronics manufacturing sector received a significant boost as the government officially launched the much-anticipated Electronics Component Manufacturing Scheme (ECMS), leading industry bodies announced on Wednesday.
The scheme is seen as a major milestone in strengthening India’s domestic electronics component ecosystem and increasing local value addition.
With a financial outlay of ₹22,919 crore (approximately $2.75 billion) over six years, ECMS aims to generate ₹4.56 lakh crore (around $55 billion) in production, attract ₹59,350 crore ($7.1 billion) in investments, and create nearly 91,600 direct jobs.
Applications for the scheme will open on May 1 for an initial three-month period and may reopen based on industry response.
Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA), said the scheme would not only strengthen India’s electronics supply chain but also help build globally competitive Indian companies.
“India has already made its mark in mobile manufacturing. The ECMS will build on that success and help us achieve the vision of $500 billion in electronics production,” Mohindroo said. He added that India’s current leadership in mobile phone exports demonstrates its capability to create a world-class electronics ecosystem.
The ECMS offers a mix of incentives, including turnover-linked support ranging from 4% to 10%, a 25% capital expenditure incentive, and a hybrid option tailored for specific components.
These incentives are designed to overcome long-standing barriers such as high capital requirements, long gestation periods, and limitations in scaling operations that have historically hampered growth.
Ashok Chandak, President of SEMI IESA, praised the scheme for addressing persistent challenges in the components and sub-assembly sectors.
“The financial incentives, tailored to the unique needs of each segment, will drive both domestic and foreign investments, reduce India’s reliance on imports, and further integrate the country’s manufacturing sector into global value chains,” Chandak said.
He added that the scheme is expected to spur sustainable development, create significant employment opportunities, and enhance India’s competitiveness in the global electronics market. (Source: IANS)
