On April 26, 2025, India introduced guidelines and an online portal for the Electronics Component Manufacturing Scheme (ECMS). Valued at INR 229.19 billion (US$2.7 billion), this initiative is designed to make India Atmanirbhar (self-reliant) in the electronics supply chain. The scheme focuses on building a strong component ecosystem by attracting significant global and domestic investments, enhancing manufacturing capacity and capabilities, and integrating Indian companies into Global Value Chains (GVCs).
What Is India’s ECMS Scheme?
India launched the Electronics Component Manufacturing Scheme (ECMS) on April 8 this year to strengthen the country’s electronics ecosystem. The scheme carries an outlay of INR 229.19 billion (US$2.58 billion) and runs for six years, with an optional one-year gestation period. The government opened the application window on May 1.
By October 27, the Centre had received 249 applications, reflecting investment commitments worth INR 1.15 trillion (US$12.99 billion). This strong response highlights the industry’s confidence in India’s push to expand its electronics manufacturing capabilities.
The ECMS scheme aims to achieve the following:
Building a self-reliant and globally competitive electronics component ecosystem:
The scheme encourages companies to produce critical components in India, reducing reliance on imports and strengthening supply chain resilience.
Attracting domestic and foreign investment across the component value chain:
It offers incentives that make India an attractive destination for global and local investors in electronics manufacturing.
Increasing domestic value addition in electronics manufacturing:
The scheme promotes production of high-value components, enabling deeper value addition within the country.
Enhancing India’s participation in global value chains:
ECMS supports the integration of Indian manufacturers into global supply networks, positioning India as a key player in the electronics sector.
Target Segment Categories under the Scheme include:
| Sr No |
Target segment |
|
| A | Sub-assemblies |
|
| B | Bare components |
|
| C | Selected bare components |
|
| D | Supply chain ecosystem and Capital equipment |
|
Time Period
The ECMS will operate from FY 2025–26 to FY 2031–32, including a one-year gestation period. It aims to develop a complete supply chain for electronics manufacturing, boost domestic value addition, and position Indian companies as competitive players in global electronics markets.
Qualification Criteria
Applicants must meet the following requirements to be eligible under the ECMS:
- Both greenfield investments (new operations or facilities established from scratch) and brownfield investments (investments in existing production setups) in the target segment are eligible.
- Separate applications must be submitted for each product within the target segment.
- Multiple applications for the same product under a single target segment will not be accepted.
- Eligibility will be based on consolidated global Electronics System Design and Manufacturing (ESDM) revenue or manufacturing revenue, along with technological and financial capability, as specified in the scheme guidelines.
Approved Companies and Investment Breakdown
Here are the approved companies selected in the first batch of ECMS applications. The list highlights key manufacturers, their proposed investments, and the scale of production they plan to achieve. It also shows where these projects will be set up and how many jobs they are expected to create. This overview gives a quick snapshot of the programme’s early momentum:
| Applicant name | Product | Project location | Investment | Production | Employees |
| Kaynes Circuits India Pvt. Ltd. | Multi-layer PCB | Tamil Nadu | INR 1.04 billion (US$11.75 million) | INR 43 billion (US$485 million) | 220 |
| Kaynes Circuits India Pvt. Ltd. | Camera module sub-assembly | Tamil Nadu | INR 3.25 billion (US$36.71 million) | INR 126.30 billion (US$1.4 billion) | 480 |
| Kaynes Circuits India Pvt. Ltd. | HDI PCB | Tamil Nadu | INR 16.84 billion (US$190 million) | INR 45.10 billion (US$509 million) | 1,480 |
| Kaynes Circuits India Pvt. Ltd. | Laminate | Tamil Nadu | INR 11.67 billion (US$131.8 million) | INR 68.75 billion (US$776 million) | 300 |
| SRF Limited | Polypropylene film | Madhya Pradesh | INR 4.96 billion (US$56 million) | INR 13.11 billion (US$148.12 million) | 225 |
| Syrma Strategic Electronics Pvt. Ltd. | Multi-layer PCB | Andhra Pradesh | INR 7.65 billion (US$86 million) | INR 69.33 billion (US$783 million) | 955 |
| Ascent Circuits Pvt. Ltd. | Multi-layer PCB | Tamil Nadu | INR 9.91 billion (US$111.9 million) | INR 78.47 billion (US$886.5 million) | 1,535 |
| Total | – | – | INR 55.32 billion (US$625.02 million) | INR 444.06 billion (US$5.01 billion) | 5,195 |
Here are the approved companies selected in the first batch of ECMS applications. The list highlights key manufacturers, their proposed investments, and the scale of production they plan to achieve. It also shows where these projects will be set up and how many jobs they are expected to create. This overview gives a quick snapshot of the programme’s early momentum.
LIST OF PRODUCTS COVERED UNDER CERTAIN TARGET SEGMENTS
| TARGET SEGMENTS | PRODUCTS COVERED |
| Non-SMD (surface mount device) passive components |
|
| Electro-mechanicals |
|
| Supply chain of sub-assemblies & bare components |
|
Qualification Criteria
Applicants must meet the following conditions:
Eligible Investments:
Greenfield investment: Establishing new operations such as factories or offices from scratch in India.
Brownfield investment: Investment in existing facilities or production arrangements in India.
Separate Applications:
One application per target segment product.
Multiple applications for the same product within a target segment are not allowed.
Evaluation Parameters:
Consolidated global Electronics System Design and Manufacturing (ESDM) revenue or manufacturing revenue.
Technological and financial capability as detailed in the scheme guidelines.
LIST OF PRODUCTS COVERED UNDER CERTAIN TARGET SEGMENTS
| TARGET SEGMENTS | PRODUCTS COVERED |
| Non-SMD (surface-mount device) passive components |
|
| Electro-mechanicals |
|
| Supply chain of sub-assemblies & bare components |
|
India launched the Electronics Component Manufacturing Scheme (ECMS), with applications opening on May 1, 2025. The incentive distribution will be carried out by the central government on a “first-come, first-served” model. The time limit of application window are as follows:
- For sub-assemblies and Bare Components: The application window opens from May 1, 2025, for a period of three months.
- For Selected Bare Components and Supply Chain Ecosystem & Capital Equipment: The application window opens from May 1, 2025, for a period of 2 years.
Types of Incentives Offered Under ECMS
1. Turnover-linked Incentive
Based on percentage growth in sales (turnover) over a company’s base year.
Applicable only to eligible products manufactured in India.
- Eligibility Requirements:
- Minimum level of increased sales.
- Minimum level of cumulative investment.
- Employment Condition:
- 1% of the incentive rate is linked to job creation.
- If unmet, incentive reduces by 1%.
2. Capex Incentive
- Supports spending on eligible capital equipment and infrastructure for manufacturing specified products in India.
- Eligibility Requirements:
- Minimum investment threshold.
- Commencement of commercial production.
- Employment Condition:
- Of the 25% capex incentive, 5% is tied to job creation.
- If unmet, incentive reduces by 5%.
3. Hybrid Incentive
- A custom blend of turnover-linked and capex incentives.
- Designed for high-priority products identified under the scheme.
INCENTIVE RATES
| Sr No | Target Segments | Cumulative Investments | Turnover Linked Incentive (%) over 6 years | Capex Incentive (%) |
| A | Sub-Assemblies | |||
| Display module sub-assembly | 2.5 billion (US$29.47 million) | 4/4/3/2/2/1 | NA | |
| Camera module sub-assembly | 5/4/4/3/2/2 | |||
| B | Bare Components | |||
| Non-SMD passive components | 500 million (US$5.89 million) | 8/7/7/6/5/4 | ||
| Electro-mechanicals | ||||
| Multi-layer PCB | ≤ 6 layers 6/6/5/5/4/4
≥ 8 layers 10/8/7/6/5/5 |
|||
| Li-ion Cells for digital application (excluding storage and mobility) | 5 billion (US$58.95 million) | 6/6/5/5/4/4 | ||
| Enclosures for mobile, IT Hardware products and related devices | 7/6/5/4/4/3 | |||
| C | Selected bare components | |||
| HDI/MSAP/flexible PCB | 10 billion (US$117.91 million) | 8/7/7/6/5/4 | 25% | |
| SMD passive components | 2.5 billion (US$29.47 million) | 5/5/4/4/3/3 | ||
| D | Supply chain ecosystem and capital equipment | |||
| Supply chain of sub-assemblies (A) & bare components (B) & (C) | 100 million (US$1.17 million) | NA | 25% | |
| Capital goods used in electronics manufacturing including their sub-assemblies and components |
Outcomes
The ECMS aims to attract investments worth INR 593.5 billion (US$6.99 billion), generate production output of INR 4.56 trillion (US$53.77 billion), and create 91,600 direct jobs along with substantial indirect employment opportunities across the electronics value chain.
So far, investment proposals worth ₹16,000 crore have been attracted under the scheme, according to sources.
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Conclusion
The ECMS scheme is designed to strengthen the electronics supply chain by targeting key components and offering fiscal incentives. It helps reduce import dependency, increase domestic value addition, encourage investments and innovation, and create employment. Its simplified guidelines aim to improve ease of doing business with straightforward compliance and efficient execution.
