The Union Cabinet had approved the Electronics Component Manufacturing Scheme (ECMS), which was notified on 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. Turnover-linked incentive Capex-linked incentive 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 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. For more info: Email: ecms-meity@meity.gov.in Contact number: +91-11-24360886 Source : ECMS portal