Strengthening India’s Electronics Component Ecosystem: ECMS

Context

The Ministry of Electronics and Information Technology approved 22 additional projects under ECMS, mobilising ₹41,863 crore of investment to strengthen India’s electronics manufacturing ecosystem.

Objective of the Scheme

• To promote domestic manufacturing of electronic components, sub-assemblies, and capital equipment
• To reduce India’s import dependence in the electronics sector

Administrative Framework

• Implemented by the Ministry of Electronics and Information Technology (MeitY)
• Approved by the Union Cabinet in 2024 with a total outlay of ₹22,919 crore

Incentive Structure and Tenure

• Provides turnover-linked, capex-based, and hybrid incentives to offset cost disadvantages
• Turnover-linked incentive tenure of 6 years, including 1-year gestation period
• Capex-based incentive tenure of 5 years

Target Segments and Strategic Goals

• Covers PCBs, Camera Modules, Copper-Clad Laminates, Polypropylene Films, and electronics capital equipment
• Targets 100% domestic demand for Copper-Clad Laminates, 20% for PCBs, and 15% for Camera Modules

Ecosystem and Employment Impact

• Complements PLI for Electronics and the India Semiconductor Mission
• Expected to generate around 91,600 direct jobs and boost indigenous R and D

Conclusion

ECMS addresses the weakest link in India’s electronics value chain, enhances Domestic Value Addition, and strengthens integration with Global Value Chains, aligning with Atmanirbhar Bharat

Source : PIB