Electronics Component Manufacturing Scheme (ECMS)
The Indian government has received investment proposals totaling ₹1.15 trillion from 249 companies under the ₹22,919 crore ECMS, according to Union Minister Ashwini Vaishnaw.
Investment and Approval Details
- The first approvals under ECMS are expected soon, with production starting by the end of 2026.
- Applications include:
- 87 from MSMEs for electro-mechanical components.
- 22 companies, with ₹8,642 crore proposed for display module sub-assemblies.
- 14 companies, with ₹6,205 crore for camera module sub-assemblies.
- 43 applications for PCB manufacturing.
- 16 companies proposing ₹35,813 crore for mobile device enclosures and IT hardware.
MSME Participation
Approximately 60% of applicants are MSMEs, indicating strong confidence in the program.
Production and Value Addition
- Production target of ₹4.56 trillion; companies assure over ₹10 trillion.
- Single company proposing an investment of ₹22,000 crore.
- Domestic value addition currently estimated at 15-18%.
Incentives and Scheme Details
- Incentives based on job creation, capital expenditure, and turnover.
- Display and camera module projects up to ₹250 crore eligible for up to 5% incentives.
- Multi-layer PCBs with eight layers may receive up to 10% incentives.
- Submissions for HDI, MSAP, and flexible PCBs open until April 2027.
- Capital expenditure incentives of up to 25% for significant investments in HDI, MSAP, and flexible PCBs.
Aim and Economic Impact
ECMS aims to enhance the electronics manufacturing ecosystem by attracting investments, boosting production, and increasing exports, particularly of mobile phones, which have grown at a CAGR of 17% in production and 20% in exports over the past decade.
Conclusion
Pankaj Mohindroo, chairman of the India Cellular and Electronics Association, states that ECMS is the next step in expanding the scale and capability in mobile phone and electronics manufacturing in India.
