Electronics Manufacturing Scheme Bags Proposals Worth INR 1.15 Lakh Cr

IT minister Ashwini Vaishnaw said that the Electronics Components Manufacturing Scheme (ECMS) has received investment proposals to the tune of INR 1.15 Lakh Cr, nearly double compared to the scheme’s original target of INR 59,350 Cr.

“The investment applications of more than INR 1 Lakh Cr under the Electronics Component Manufacturing Scheme clearly show PM Narendra Modi’s focus on electronics manufacturing and the trust developed by the world in India in the last 11 years. This trust is resulting in investment, employment, and extra production,” Vaishnaw said.

He said that the IT ministry has received production estimates to the tune of INR 10.34 Lakh Cr against the set target of INR 4.5 Lakh Cr under the scheme. 

As per the minister, the scheme is now expected to generate 1.41 Lakh jobs, well above the initial target of 91,600. He added that the incentive outgo under the initiative will now likely be INR 41,468 Cr compared to INR 22,805 Cr planned earlier.

As per NDTV Profit, Vaishnaw said that 60% of applications were from MSMEs, adding that the scheme “for the first time” saw investments in advanced domains such as surface mount device (SMD) passives, laminates, flexible printed circuit boards (PCBs), anodes, and capital equipment. 

The initiative is also said to have attracted the country’s highest-ever commitment of INR 22,000 Cr from a single player. “The next logical step is to manufacture the raw materials for these components within India,” Vaishnaw reportedly added.

While the names of the selected companies will be announced soon, applications for the capital equipment segment remain open till April 2027. 

Approved by the Union cabinet in March and notified in April, the ECMS aims to build a $500 Bn domestic electronics component manufacturing ecosystem in the country by FY32. 

With a tenure of six years and a gestation period of one year, the initiative will offer varied fiscal incentives such as turnover-linked incentives, capex-linked incentives, and a combination of both, called hybrid incentives, to applicants. Notably, a portion of the incentives is also linked to employment.

At the heart of all this is India’s growing electronic manufacturing ecosystem, which produced domestic goods worth INR 9.52 Lakh Cr in FY24 as against INR 1.9 Lakh Cr in FY15. The number further zoomed to INR 11.3 Lakh Cr in FY25.

As per the government data, India also attracted more than $4 Bn in foreign direct investment (FDI) in the space of electronics manufacturing since FY21. Nearly 70% of this inflow was contributed by the beneficiaries of the Centre’s various production-linked-incentive (PLI) schemes.