**Executive Summary:**
The Ministry of Electronics and Information Technology introduced the Electronics Component Manufacturing Scheme (ECMS) on April 8, 2025, to strengthen India's electronics manufacturing ecosystem. The scheme aims to attract global and domestic investments across the value chain, increase domestic value addition, and enhance India's share in global electronic trade. Applications for the scheme are currently being accepted via the online portal.
**Key Points / Main Content:**
* **Objective:** To develop a robust electronics component manufacturing ecosystem.
* **Target Segments:**
* Subassemblies
* Bare components
* Complete supply chain ecosystem
* Capital equipment and their subassemblies.
* **Incentives:**
* Turnover-linked incentives
* Capital incentives
* Hybrid incentives (in some cases)
* Incentives tied to employment thresholds.
* **Geographic Scope:** Pan-India initiative.
**Impact Analysis:**
**Electronics Manufacturers (Global & Domestic)**
* **Impact:** Opportunity to invest in and expand electronics component manufacturing in India, potentially increasing profitability and market share.
* **Action Required:** Evaluate the scheme's incentives and requirements, prepare and submit applications via the designated portal, and plan investments accordingly.
**Component Suppliers**
* **Impact:** Potential for increased demand for materials and services, leading to business growth.
* **Action Required:** Align production and supply chains to support the expansion of electronics component manufacturing, explore opportunities for collaboration with manufacturers.
**Employees/Potential Employees:**
* **Impact:** Potential for new job creation in the electronics manufacturing sector.
* **Action Required:** Monitor industry growth and apply for relevant positions.
**Indian Economy:**
* **Impact:** Increased domestic value addition, enhanced export potential, and integration with global value chains.
* **Action Required:** No direct action required.
Key Entities Referenced
Ministry of Electronics and Information Technology: The Indian government ministry responsible for electronics and information technology policy.
Electronics Component Manufacturing Scheme: A scheme by the Government of India to boost the electronics manufacturing ecosystem by promoting domestic manufacturing of electronic components.
India: The country where the electronics manufacturing ecosystem is being boosted.
Maharashtra: A state in India where the status of the Electronics Components Manufacturing Scheme is being assessed.
Palghar District, Maharashtra: A district in Maharashtra, India, being considered for future programs related to the Electronics Components Manufacturing Scheme.
Global Value Chains: The international networks of production that the Indian domestic electronic industry aims to integrate with through the Electronics Component Manufacturing Scheme.
Domestic Value Addition: An increase in the value of goods and services produced within the country as a result of the Electronics Component Manufacturing Scheme.
Jitin Prasada: Minister of State for Electronics and Information Technology.
GOVERNMENT OF INDIA
MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY
LOK SABHA
UNSTARRED QUESTION NO. 535
TO BE ANSWERED ON: 23.07.2025
ELECTRONICS COMPONENT MANUFACTURING SCHEME
535. DR. HEMANT VISHNU SAVARA:
SMT SHOBHANABEN MAHENDRASINH BARAIYA:
SMT. SMITA UDAY WAGH:
SHRI NABA CHARAN MAJH:
Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:
(a) the key objectives and features of the Electronics Components Manufacturing Scheme (ECMS)
and its role in boosting India's electronics manufacturing ecosystem;
(b) the specific sub-segments identified under ECMS for sub-assemblies, bare components and
capital equipment along with the investment thresholds and incentive rates;
(c) whether the ECMS supports capital equipment and tooling and the initiatives taken to attract
global investments in electronics manufacturing;
(d) the nature of incentives provided under the ECMS and the manner in which these are expected
to promote employment and industry growth;
(e) the steps taken to ensure quality and innovation in electronics manufacturing under the ECMS,
including adoption of Six Sigma standards and creation of design teams; and
(f) the status of the Electronics Components Manufacturing Scheme in the State of Maharashtra
and any future programme in Palghar District in Maharashtra?
ANSWER
MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY
(SHRI JITIN PRASADA)
(a) to (f): Government initiatives in last ten years have resulted in establishment of a strong
electronics manufacturing ecosystem in India. It can be seen from the following:
# 2014-15 2024-25 Remarks
Production of electronics goods 1.9 Lakh Cr 11.3 Lakh Cr Increased 6 times
(Rs.)
Export of electronics goods (Rs.) 38 thousand Cr 3.27 Lakh Cr Increased 8 times
Mobile manufacturing units 2 300 Increased 150
times
Production of mobile phones (Rs.) 18 thousand Cr 5.45 Lakh Cr Increased 28
times
Export of mobile phones (Rs.) 1,500 Cr 2 Lakh Cr Increased 127
timesMobile phone imported (units) 75% of the 0.02% of the
total demand total demand
To further broaden and deepen the electronics component manufacturing ecosystem, Government
of India notified Electronics Component Manufacturing Scheme (ECMS) on 08th April 2025. It
aims to develop robust component manufacturing ecosystem by attracting investments
(global/domestic) across the value chain, leading to increase in Domestic Value Addition (DVA)
and increase in the share of India’s exports in global electronic trade by integrating its domestic
electronic industry with the Global Value Chains (GVCs).
The target segment covered under the scheme are sub-assemblies, bare components, their complete
supply chain ecosystem and Capital equipment and their sub-assemblies as well.
The investment thresholds and incentive rates are different for all products covered under the target
segment. The scheme provides for turnover linked incentives, capital incentive as well as a hybrid
of both incentives in a few cases. Further, to promote employment generation in the country, a part
of the incentive has been earmarked on achievement of employment thresholds.
Relevant details of the scheme are available on the website ecms.meity.gov.in
The Electronics Component Manufacturing Scheme is a pan India initiative scheme. The
applications for the Scheme are currently being accepted on the portal.
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