Electronics Components Manufacturing Scheme Gets Strong Response — Proposals At 2X Of Target
The government has received applications proposing investments worth Rs 1.15 lakh crore, while the original target was Rs 59,350 crore, Union IT Minister Ashwini Vaishnaw said on Thursday.
The Indian government's Electronics Components Manufacturing Scheme (ECMS) has drawn an overwhelming response, with applications proposing investments worth Rs 1.15 lakh crore, nearly double the scheme’s original target of Rs 59,350 crore, Union IT Minister Ashwini Vaishnaw said on Thursday.
Against a total production target of Rs 4.5 lakh crore, the ministry has received production estimates worth Rs 10.34 lakh crore.
The scheme is also expected to generate 1.41 lakh jobs, well above the initial target of 91,600.Ashwini Vaishnaw, Union Minister, Govt of India
The incentive outgo under the scheme is now projected at Rs 41,468 crore, compared with the budgeted Rs 22,805 crore. A total of 249 applications have been received, which are currently under scrutiny and will be processed on a first-come, first-serve basis.
Vaishnaw said the ECMS has attracted the highest-ever investment commitment of Rs 22,000 crore from a single player. For the first time, the scheme will see investments in SMD passives, laminate, flexible PCBs, anodes, and capital equipment.
He added that companies are not only setting up manufacturing facilities but also building design teams in India, strengthening the local electronics ecosystem. Notably, 60% of applications are from MSMEs.
While approved companies will be announced soon, the capital equipment segment remains open for fresh applications till April 2027. Two applicants under the scheme will require rare earth minerals, for which domestic sourcing efforts are underway.
"The next logical step is to manufacture the raw materials for these components within India," Vaishnaw said, adding that the scheme has laid a strong foundation for India’s ambition to become a global hub in electronics manufacturing.
"Manufacturing of sub-assemblies and components will firmly be established in the country now, substantially increasing India’s manufacturing prowess and global competitiveness.This scheme is secular and horizontal for all verticals of electronics and thereby building core competency and capacity," said Pankaj Mohindroo, Chairman, India Cellular & Electronics Association.
"We were happy to contribute by participating extensively with MeitY in the consultations and the global outreach efforts," he added.
