Boosting Electronics Manufacturing in India-ECMS
The Electronics Component Manufacturing Scheme (ECMS) is an important step by the Government of India to make the country stronger in electronics production. Instead of depending on other countries for parts, this scheme encourages companies to manufacture key electronic components right here in India. By offering financial support and rewards, the government hopes to attract new investments, create jobs, and make India a global hub for electronics manufacturing. In this article, let us discuss the Scheme:
Objective of the Scheme
The ECMS aims to boost local production of electronic components and sub-assemblies — the key parts that make up everyday products like smartphones, laptops, electric vehicles, and telecom devices. Through financial incentives linked to investment, turnover, and job creation, the government hopes to:
- Attract both Indian and global companies to set up manufacturing in India.
- Help existing manufacturers expand their operations.
- Develop a strong, reliable, and competitive supply chain within the country.
- Generate large-scale employment opportunities in the electronics sector.
- The Ministry of Electronics and IT (MeitY) has extended the ECMS application deadline to 30 September 2025 (from 31 July). This gives companies extra time to apply for incentives and is expected to encourage more participation across the electronics manufacturing sector.
Products covered under the scheme:
The scheme is designed to support the entire manufacturing ecosystem, not just a few components. It includes:
- Sub-assemblies: e.g., camera modules, display units.
- Basic electronic components: resistors, capacitors, PCBs, Li-ion cells, enclosures, etc.
- Advanced parts: high-density PCBs, SMD passive components.
- Machines and raw materials: equipment and materials needed to produce the above parts.
Eligibility Criteria
1. Any company, Indian or international, willing to invest in India.
2. You can either start a new unit or expand an existing one.
3. Each product line requires a separate application and business plan, so plan your project carefully
The overall tenure of the Scheme is 6 years till March, 2032. Application fees ranges from Rs. 2 to 5 lakhs. Application needs to be submitted on www.ecms.meity.gov.in. On submission of application and prima facie scrutiny of it, the acknowledgement is issued. On detailed examination and approval of the Competent Authority, the approval letter is issued. Post approval, there are compliances to be made and any changes needs to be informed to the Project Management Agency.
Basic Requirements to Get the Incentive
To qualify, you need to meet three key conditions:
- Investment in plant and machinery – capital investment is essential.
- Sales growth – the scheme rewards businesses that scale up their operations.
- Job creation – incentives may be reduced if employment targets are not met.
The ECMS is divided into target segments, each with specific investment, revenue, and job creation requirements. The table below summarizes these criteria, showing what companies need to qualify for the scheme.
| Target Segment | Minimum Investment (in Crores.) | Revenue Requirement (Year 1- 5) (in Crores.) | Employment Creation (Year 1- 5) |
| Display Module Sub-Assembly | ₹50 cr. | ₹200 – ₹1,000 | 50 -250 |
| Camera Module Sub-Assembly | ₹50 cr. | ₹150 – ₹750 | 75 – 375 |
| Non-SMD Passive Components | ₹10 cr. | ₹15 – ₹75 | 30 – 150 |
| Electro-mechanical Components | ₹10 cr. | ₹15 – ₹75 | 30 – 150 |
| Multi-layer PCBs | ₹10 cr. | ₹15 – ₹75 | 15 – 75 |
| Li-ion Cells for Digital Applications | ₹100 cr. | ₹200 – ₹1,000 | 100 – 500 |
| Enclosures for Mobile/IT Hardware | ₹100 cr. | ₹200 – ₹1,000 | 120 – 600 |
| HDI/MSAP/Flexible PCBs | ₹200 cr. | ₹200 – ₹1,000 | 200 – 1,000 |
| SMD Passive Components | ₹50 cr. | ₹75 – ₹375 | 100 – 500 |
| Supply Chain of Sub-assemblies & bare components | ₹10 cr. | Not Applicable | 10 |
| Capital goods used in electronics manufacturing | ₹10 cr. | Not Applicable | 20 |
Benefits
1. Incentive Support: Companies can receive financial support of up to 25% of their eligible capital investment.
2. Additional Rewards: Extra incentives are provided based on a company’s turnover growth and the number of jobs created.
3. Duration: The scheme will be implemented over a period of FY 2025–26 to FY 2031–32, giving businesses a long-term framework to plan and invest in electronic component manufacturing.
4. Coverage: ECMS applies to a wide variety of electronic components and sub-assemblies, including parts used in smartphones, laptops, electric vehicles, and telecom equipment.
5. Job Creation: The scheme is expected to create over 91,600 direct jobs, providing employment opportunities across technical and manufacturing roles while boosting the electronics sector.
In case you are into business of manufacturing of electronics and have applied or have any query and need any clarification you may like to connect with us.
Also Read: ELECTRONICS COMPONENT MANUFACTURING SCHEME
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Abhinarayan Mishra FCA, FCS, LL.B, IP, RV; Partner, KPAM & Associates, Chartered Accountants, SAM Law Associates LLP. New Delhi ; +91 9910744992; ca.abhimishra@gmail.com; samlawassociates18@gmail.com
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