Ashwini Vaishnaw Launches Guidelines and Portal for Electronics Component
Manufacturing Scheme
·
Union Minister Urges Electronics
Industry to Achieve Six Sigma Standards and Establish Design Teams
·
Sarvam AI selected to build India’s first indigenous AI foundational model
·
Finished goods account for
80 to 85 percent of the value chain.
·
Electronics production has
grown five-fold and exports have grown more than six-fold, with export CAGR exceeding
20% and production CAGR over 17%.
·
Advances in AI and data-driven
solutions. He informed that 350 datasets have already been uploaded on AI Kosh, and four AI tools developed by IITs will soon be released.
·
Sarvam AI was selected to build
India’s first indigenous AI foundational model.
·
Scheme goes beyond incentivizing
subassemblies and components—it adopts a comprehensive approach by encompassing
the entire supply chain.
·
Incentivizes the subassembly
of equipment used in manufacturing
·
Incentives are allocated based
on a first-come, first-served.
·
Electronics Component Manufacturing
Scheme (ECMS), which was notified vide Gazette Notification CG-DL-E-08042025-262341
dated 08.04.2025.
·
Scheme Budget Outlay: ₹
22,919 crore
·
Scheme Tenure: 6 years (1
year of gestation period) i.e. from FY2025-26 to FY2031-32.
[ABS News Service/28.04.2025]
Union Minister for Electronics and Information
Technology Ashwini Vaishnaw on 26 April, 2025 launched
the guidelines and portal for the Electronics Component Manufacturing Scheme (ECMS),
marking a major step towards strengthening India’s electronics manufacturing ecosystem.
Speaking at the launch, Union Minister outlined
the Government’s clear strategy for electronics manufacturing. He said India started
its journey by manufacturing finished products to build volume and basic confidence,
enabling downward integration. This was followed by module-level manufacturing,
then component manufacturing, and now manufacturing of materials that build components.
Highlighting that finished goods account for 80 to 85 percent of the value chain,
he noted that the scale achieved in electronics manufacturing has been phenomenal.
The Minister stated that electronics production
has grown five-fold and exports have grown more than six-fold, with export CAGR
exceeding 20% and production CAGR over 17%. He added that mobile phones, servers,
laptops, and IT hardware have seen very strong progress and that the industry is
poised to take off significantly.
Mr. Vaishnaw described
ECMS as a horizontal scheme that will support not just electronics but also industrial,
power, automobile sectors and more. He emphasized that a complete ecosystem for
electronics manufacturing is coming into place across the country.
Underscoring the importance of innovation
and quality, the Minister said that many companies have now established design teams,
and it is essential that every participant develops such teams. Stressing on quality,
he called for achieving Six Sigma standards across the sector, warning that those
not adhering to quality benchmarks would be cut short. He said the twin focus on
design capability and quality excellence would drive India's leadership in electronics.
Mr. Vaishnaw also
spoke about India’s advances in AI and data-driven solutions. He informed that 350
datasets have already been uploaded on AI Kosh, and four
AI tools developed by IITs will soon be released. He further stated that techno-legal
solutions are being developed to strengthen the electronics ecosystem.
The Minister informed that ECMS has a strong
pipeline of projects ready for approval and expressed confidence that this marks
just the beginning of India’s rapid growth as a global electronics hub.
Addressing the session, Secretary, MeitY, Mr. S Krishnan said that ECMS aims to firmly establish
India as electronic manufacturing superpower in the world. He added the MeitY will work with all the stakeholders to make the scheme
a great success.
During the event, Sarvam
AI was selected to build India’s first indigenous AI foundational model, marking
a major milestone in the country’s AI innovation ecosystem.
Strong Industry, Government, and Global
Participation
The launch event was witnessed by 200+ participants
which includes Senior GoI officials, Senior State Government
officials, Embassy representatives, Senior Domestic and Global Industry leaders,
Domestic and Global Industry Associations, Financial institutions, consulting firms,
media, etc.
The unveiling of the guidelines and portal
for the ECMS was a significant milestone, drawing the attention of prominent industry
leaders, esteemed industry associations, leading financial institutions, and representatives
from various embassies. This landmark event underscored the importance of collaboration
between key stakeholders. The presence of such distinguished individuals highlighted
the widespread interest in and commitment to advancing the component manufacturing
in county.
Presentation was made on the scheme and
its guidelines, highlighting the journey of its formulation and the distinctive
features of this unique scheme. The presentation provided a comprehensive overview
of the thought process and strategic considerations that shaped the scheme, emphasizing
its innovative approach to differentiated incentivization. Notably, it marks the
first-ever offering of hybrid incentives, introducing a direct linkage between incentives and employment
generation, reinforcing its commitment to economic growth and job creation.
This scheme goes beyond incentivizing subassemblies
and components—it adopts a comprehensive approach by encompassing the entire supply
chain associated with these elements. In addition to fostering the development of
components and subassemblies, it also extends support to capital equipment, ensuring
the inclusion of essential machinery that drives manufacturing processes. Moreover,
it incentivizes the subassembly of equipment used in manufacturing, reinforcing
an integrated system that enhances efficiency and production capabilities. By incorporating
these critical aspects, the scheme promotes a robust, interconnected ecosystem,
strengthening domestic manufacturing.
The scheme places a strong emphasis on the
performance of applicants, ensuring that incentives are allocated based on a first-come,
first-served approach. This structure encourages efficiency, proactive participation,
and timely application submissions, fostering a competitive yet fair environment.
Furthermore, the scheme guidelines that
govern the implementation process have been designed with clarity and precision,
ensuring they remain simple and unambiguous. The guidelines uphold the ease of doing
business, making compliance straightforward and accessible for all stakeholders.
By eliminating unnecessary complexities and streamlining procedural requirements,
the guidelines facilitate efficient execution while fostering a conducive environment.
During the event, industry leaders applauded
the seamless implementation of the Production-Linked Incentive (PLI) schemes rolled
out by MeitY. They expressed appreciation for efficient
execution of these initiatives, emphasizing how the well-defined processes have
facilitated smooth and prompt disbursement of incentives.
Union Minister Mr. Ashwini Vaishnaw, along with all participants, observed a minute of
silence at the start of the event in memory of the victims of the recent terrorist
attack in Pahalgam.
Background
The Union Cabinet, chaired by Hon’ble Prime
Minister, had approved the Electronics Component Manufacturing Scheme (ECMS),
which was notified vide Gazette Notification CG-DL-E-08042025-262341 dated 08.04.2025.
The scheme aims to develop a robust component
ecosystem by attracting large investments (global/domestic) in electronics component
manufacturing ecosystem, increasing Domestic Value Addition (DVA) by developing
capacity and capabilities, and integrating Indian companies with Global Value Chains
(GVCs).
With various initiatives of Gol, the electronics
manufacturing sector has witnessed remarkable growth in the last decade. The domestic
production of electronic goods has increased from Rs.1.90 lakh crore in FY 2014-15
to Rs.9.52 lakh crore in FY 2023-24 at a CAGR of more than 17%. The exports of electronic
goods have also increased from Rs.0.38 lakh crore in FY 2014-15 to Rs.2.41 lakh
crore in FY 2023-24 at a CAGR of more than 20%. In FY 2024-25, Electronics became
the 3rd largest exported commodity from India.
India has made significant progress in electronics
manufacturing, especially in mobile manufacturing and become the world’s 2nd
largest mobile manufacturing country.
Scheme Budget Outlay: ₹ 22,919 crore
Scheme Tenure: 6 years (1 year of gestation period) i.e.
from FY2025-26 to FY2031-32.
Incentive Structure
The scheme offers differentiated fiscal
incentives viz. a) Turnover-linked incentive b) Capex-linked incentive c) Hybrid
incentive [i.e. combination of both (a) and (b)]
Employment linked incentive: A part of turnover linked incentive and
capex incentive is linked with employment.
Target Segment-wise Incentives Offered
|
S.No. |
Target segments |
Cumulative investment (₹) |
Turnover linked incentive (%) |
Capex incentive (%) |
|
A |
Sub-assemblies |
|||
|
1 |
Display module sub-assembly |
250 crore |
4/4/3/2/2/1 |
NA |
|
2 |
Camera module sub-assembly |
250 crore |
5/4/4/3/2/2 |
NA |
|
B |
Bare components |
|||
|
3 |
Non-SMD passive components |
50 crore |
8/7/7/6/5/4 |
NA |
|
4 |
Electro-mechanicals |
50 crore |
8/7/7/6/5/4 |
NA |
|
5 |
Multi-layer PCB |
50 crore |
≤ 6 layers 6/6/5/5/4/4 ≥ 8 layers 10/8/7/6/5/5 |
NA |
|
6 |
Li-ion Cells for digital application (excluding storage
and mobility) |
500 crore |
6/6/5/5/4/4 |
NA |
|
7 |
Enclosures for Mobile, IT Hardware products and related
devices |
500 crore |
7/6/5/4/4/3 |
NA |
|
C |
Selected bare components |
|||
|
8 |
HDI/MSAP/Flexible PCB |
1000 crore |
8/7/7/6/5/4 |
25% |
|
9 |
SMD passive components |
250 crore |
5/5/4/4/3/3 |
25% |
|
S.No. |
Target segments |
Minimum investment (₹) |
Turnover linked incentive (%) |
Capex incentive (%) |
|
D |
Supply chain ecosystem
and Capital equipment |
|||
|
10 |
Supply chain of sub-assemblies (A) &
bare components (B) & (C) |
10 crore |
NA |
25% |
|
11 |
Capital goods used in electronics manufacturing including
their sub-assemblies and components |
10 crore |
NA |
25% |
Application Window: Scheme shall be open to receive application
from 1st May 2025 through the online portal (www.ecms.meity.gov.in).
i. For target segment (A), (B) & (C): 3
months
ii. For target segment (D): 2 years
Expected Outcomes
The scheme envisages to attract investment
of ₹ 59,350 crore, result in production of ₹ 4,56,500 crore and generate
additional direct employment of 91,600 persons and many indirect jobs as well during
its tenure.
For more info:
Website: www.ecms.meity.gov.in; www.meity.gov.in
Email: ecms-meity@meity.gov.in
Contact number: +91-11-24360886