Move aims to capitalise on rising investments, boost domestic value addition, and integrate India deeper into global supply chains
Finance Minister Nirmala Sitharaman on Sunday announced a sharp increase in the outlay for the Electronics Component Manufacturing Scheme (ECMS) to Rs 40,000 crore, signalling the government’s intent to accelerate India’s electronics manufacturing ambitions.
The ECMS, notified by the Ministry of Electronics and Information Technology (MeitY) on April 8, 2025, originally carried an outlay of Rs 22,919 crore over six years. The scheme aims to build a robust electronics component ecosystem in the country by offering targeted incentives across 11 key segments, including printed circuit boards (PCBs), capacitors, resistors, display modules, and other critical components.
By enhancing the allocation, the government seeks to capitalise on the momentum generated over the past year, encourage higher domestic value addition, attract fresh investments, and better integrate Indian manufacturers with Global Value Chains (GVCs).
Industry executives say the expanded outlay could help reduce India’s dependence on imports of high-value components, strengthen supply-chain resilience, and support the broader push to make India a global electronics manufacturing hub.
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