New Delhi : Union Minister for Electronics and Information Technology Ashwini Vaishnaw today launched the guidelines and portal for the Electronics Component Manufacturing Scheme (ECMS), marking a major step towards strengthening India’s electronics manufacturing ecosystem.
Speaking at the launch, Union Minister outlined the Government’s clear strategy for electronics manufacturing. He said India started its journey by manufacturing finished products to build volume and basic confidence, enabling downward integration. This was followed by module-level manufacturing, then component manufacturing, and now manufacturing of materials that build components. Highlighting that finished goods account for 80 to 85 percent of the value chain, he noted that the scale achieved in electronics manufacturing has been phenomenal.
The Minister stated that electronics production has grown five-fold and exports have grown more than six-fold, with export CAGR exceeding 20% and production CAGR over 17%. He added that mobile phones, servers, laptops, and IT hardware have seen very strong progress and that the industry is poised to take off significantly.
Shri Vaishnaw described ECMS as a horizontal scheme that will support not just electronics but also industrial, power, automobile sectors and more. He emphasized that a complete ecosystem for electronics manufacturing is coming into place across the country.
Underscoring the importance of innovation and quality, the Minister said that many companies have now established design teams, and it is essential that every participant develops such teams. Stressing on quality, he called for achieving Six Sigma standards across the sector, warning that those not adhering to quality benchmarks would be cut short. He said the twin focus on design capability and quality excellence would drive India’s leadership in electronics.
Shri Vaishnaw also spoke about India’s advances in AI and data-driven solutions. He informed that 350 datasets have already been uploaded on AI Kosh, and four AI tools developed by IITs will soon be released. He further stated that techno-legal solutions are being developed to strengthen the electronics ecosystem.
The Minister informed that ECMS has a strong pipeline of projects ready for approval and expressed confidence that this marks just the beginning of India’s rapid growth as a global electronics hub.
Addressing the session, Secretary, MeitY, S Krishnan said that ECMS aims to firmly establish India as electronic manufacturing superpower in the world. He added the MeitY will work with all the stakeholders to make the scheme a great success.
During the event, Sarvam AI was selected to build India’s first indigenous AI foundational model, marking a major milestone in the country’s AI innovation ecosystem.
Strong Industry, Government, and Global Participation
The launch event was witnessed by 200+ participants which includes Senior GoI officials, Senior State Government officials, Embassy representatives, Senior Domestic and Global Industry leaders, Domestic and Global Industry Associations, Financial institutions, consulting firms, media, etc.
The unveiling of the guidelines and portal for the ECMS was a significant milestone, drawing the attention of prominent industry leaders, esteemed industry associations, leading financial institutions, and representatives from various embassies. This landmark event underscored the importance of collaboration between key stakeholders. The presence of such distinguished individuals highlighted the widespread interest in and commitment to advancing the component manufacturing in county.
Presentation was made on the scheme and its guidelines, highlighting the journey of its formulation and the distinctive features of this unique scheme. The presentation provided a comprehensive overview of the thought process and strategic considerations that shaped the scheme, emphasizing its innovative approach to differentiated incentivization. Notably, it marks the first-ever offering of hybrid incentives, introducing a direct linkage between incentives and employment generation, reinforcing its commitment to economic growth and job creation.
This scheme goes beyond incentivizing subassemblies and components—it adopts a comprehensive approach by encompassing the entire supply chain associated with these elements. In addition to fostering the development of components and subassemblies, it also extends support to capital equipment, ensuring the inclusion of essential machinery that drives manufacturing processes. Moreover, it incentivizes the subassembly of equipment used in manufacturing, reinforcing an integrated system that enhances efficiency and production capabilities. By incorporating these critical aspects, the scheme promotes a robust, interconnected ecosystem, strengthening domestic manufacturing.
The scheme places a strong emphasis on the performance of applicants, ensuring that incentives are allocated based on a first-come, first-served approach. This structure encourages efficiency, proactive participation, and timely application submissions, fostering a competitive yet fair environment.
Furthermore, the scheme guidelines that govern the implementation process have been designed with clarity and precision, ensuring they remain simple and unambiguous. The guidelines uphold the ease of doing business, making compliance straightforward and accessible for all stakeholders. By eliminating unnecessary complexities and streamlining procedural requirements, the guidelines facilitate efficient execution while fostering a conducive environment.
During the event, industry leaders applauded the seamless implementation of the Production-Linked Incentive (PLI) schemes rolled out by MeitY. They expressed appreciation for efficient execution of these initiatives, emphasizing how the well-defined processes have facilitated smooth and prompt disbursement of incentives.
Union Minister Shri Ashwini Vaishnaw, along with all participants, observed a minute of silence at the start of the event in memory of the victims of the recent terrorist attack in Pahalgam.
Background
The Union Cabinet, chaired by Hon’ble Prime Minister, had approved the Electronics Component Manufacturing Scheme (ECMS), which was notified vide Gazette Notification CG-DL-E-08042025-262341 dated 08.04.2025.
The scheme aims to develop a robust component ecosystem by attracting large investments (global/domestic) in electronics component manufacturing ecosystem, increasing Domestic Value Addition (DVA) by developing capacity and capabilities, and integrating Indian companies with Global Value Chains (GVCs).
With various initiatives of Gol, the electronics manufacturing sector has witnessed remarkable growth in the last decade. The domestic production of electronic goods has increased from Rs.1.90 lakh crore in FY 2014-15 to Rs.9.52 lakh crore in FY 2023-24 at a CAGR of more than 17%. The exports of electronic goods have also increased from Rs.0.38 lakh crore in FY 2014-15 to Rs.2.41 lakh crore in FY 2023-24 at a CAGR of more than 20%. In FY 2024-25, Electronics became the 3rd largest exported commodity from India.
India has made significant progress in electronics manufacturing, especially in mobile manufacturing and become the world’s 2nd largest mobile manufacturing country.
Scheme Budget Outlay: ₹ 22,919 crore
Scheme Tenure: 6 years (1 year of gestation period) i.e. from FY2025-26 to FY2031-32.
Incentive Structure
The scheme offers differentiated fiscal incentives viz. a) Turnover-linked incentive b) Capex-linked incentive c) Hybrid incentive [i.e. combination of both (a) and (b)]
Employment linked incentive: A part of turnover linked incentive and capex incentive is linked with employment.
Target Segment-wise Incentives Offered
| S.No. | Target segments | Cumulative investment
(₹) |
Turnover linked incentive
(%) |
Capex incentive
(%) |
| A | Sub-assemblies | |||
| 1 | Display module sub-assembly | 250 crore | 4/4/3/2/2/1 | NA |
| 2 | Camera module sub-assembly | 250 crore | 5/4/4/3/2/2 | NA |
| B | Bare components | |||
| 3 | Non-SMD passive components | 50 crore | 8/7/7/6/5/4 | NA |
| 4 | Electro-mechanicals | 50 crore | 8/7/7/6/5/4 | NA |
| 5 | Multi-layer PCB | 50 crore | ≤ 6 layers 6/6/5/5/4/4
≥ 8 layers 10/8/7/6/5/5 |
NA
|
| 6 | Li-ion Cells for digital application (excluding storage and mobility) | 500 crore | 6/6/5/5/4/4 | NA
|
| 7 | Enclosures for Mobile, IT Hardware products and related devices | 500 crore | 7/6/5/4/4/3 | NA |
| C | Selected bare components | |||
| 8 | HDI/MSAP/Flexible PCB | 1000 crore | 8/7/7/6/5/4 | 25% |
| 9 | SMD passive components | 250 crore | 5/5/4/4/3/3 | 25% |
| S.No. | Target segments | Minimum investment
(₹) |
Turnover linked incentive
(%) |
Capex incentive
(%) |
| D | Supply chain ecosystem and Capital equipment | |||
| 10 | Supply chain of sub-assemblies (A) & bare components (B) & (C) | 10 crore | NA | 25% |
| 11 | Capital goods used in electronics manufacturing including their sub-assemblies and components | 10 crore | NA | 25% |
Application Window: Scheme shall be open to receive application from 1st May 2025 through the online portal (www.ecms.meity.gov.in).
- For target segment (A), (B) & (C): 3 months
- For target segment (D): 2 years
Expected Outcomes
The scheme envisages to attract investment of ₹ 59,350 crore, result in production of ₹ 4,56,500 crore and generate additional direct employment of 91,600 persons and many indirect jobs as well during its tenure.