India Launches ₹22,919 cr ECMS to Boost Electronics Making
The Indian government has taken a significant step towards boosting the country’s electronics manufacturing sector by launching the Electronics Component Manufacturing Scheme (ECMS) on May 1, 2025. The scheme, worth ₹22,919 crore, aims to encourage local production of electronic components, reduce imports, and create over 91,000 jobs in the sector.
The ECMS is a major initiative by the government to promote the growth of the electronics industry in India, which has been facing challenges due to high imports and a lack of domestic manufacturing capabilities. With the scheme, the government is providing financial support to companies that want to set up manufacturing units for electronic components in India.
The ECMS has received a strong response from the industry, with nearly 100 companies, including major players like Tata and Foxconn, applying for the scheme. The companies that have applied include original equipment manufacturers (OEMs), original design manufacturers (ODMs), and electronic component manufacturers.
The scheme offers financial support to companies in the form of subsidies, incentives, and tax benefits. The government will provide a subsidy of up to 20% of the project cost to eligible companies, while the state governments will provide additional incentives. The companies will also be eligible for tax benefits under the scheme.
The ECMS has been designed to promote the production of a wide range of electronic components, including printed circuit boards (PCBs), semiconductors, and fiber optic components. The scheme also aims to encourage the development of new technologies and innovations in the sector.
The government has set a deadline of July 31, 2025, for submitting applications under the ECMS. However, with the strong interest shown by companies, the government may extend the deadline and start project approvals by August-September.
The ECMS is expected to have a positive impact on the Indian electronics industry, which has been facing challenges due to high imports and a lack of domestic manufacturing capabilities. The scheme will encourage companies to invest in the sector, create jobs, and reduce imports.
The Indian electronics industry is a significant sector, accounting for around 3% of the country’s GDP. The sector has been growing at a rapid pace, driven by demand from various industries, including telecommunications, automotive, and consumer electronics. However, the sector has been facing challenges due to high imports and a lack of domestic manufacturing capabilities.
The ECMS is expected to address the challenges facing the sector by promoting the production of electronic components in India. The scheme will encourage companies to set up manufacturing units in India, create jobs, and reduce imports.
The Indian government has been taking steps to promote the growth of the electronics industry in the country. In 2022, the government launched the Production Linked Incentive (PLI) scheme for the electronics sector, which offers financial incentives to companies that invest in the sector.
The PLI scheme has been successful in attracting investments from companies like Foxconn, Samsung, and Wistron. The scheme has also helped to increase the production of electronic components in India, reducing imports and creating jobs.
The ECMS is the latest initiative by the government to promote the growth of the electronics industry in India. The scheme is expected to have a positive impact on the sector, encouraging companies to invest in the country and create jobs.
In conclusion, the ECMS is a major initiative by the Indian government to promote the growth of the electronics industry in the country. The scheme offers financial support to companies that want to set up manufacturing units for electronic components in India, reducing imports and creating jobs. With the strong interest shown by companies, the government may extend the deadline and start project approvals by August-September.
News Source:
https://ascendants.in/business-stories/electronics-component-ecms-india-2025/
