Athira Sethu
Kochi, 12 September 2025
India is attempting vigorously to develop its electronics production sector, and the Electronics Component Manufacturing Scheme (ECMS) is centrally involved in this endeavor. This scheme is designed to increase India’s production of electronic components, which would make India self-sufficient and a major contributor in the international electronics sector.
What is ECMS?
ECMS is a government scheme to promote industries to produce electronic components domestically. It has a budget of ₹22,919 crore and aims to attract investment, generate employment, and enhance electronics manufacturing in India. The scheme would reduce India’s dependency on imports and contribute to the establishment of a robust local manufacturing ecosystem.
How India is Growing in Electronics Manufacturing
India has already achieved a lot in the manufacturing of electronics, particularly smartphones. Almost 99.2% of smartphones being sold in India are manufactured locally. This indicates that India excels at assembling electronics and is now planning to produce higher-end products such as semiconductors and other vital parts.
Major Government Initiatives Encouraging Electronics Manufacturing
To encourage the development of the electronics industry, the government of India has announced a number of main policies:
- Production-Linked Incentive (PLI) Scheme: This encourages companies to produce electronics in India. It has drawn numerous investments and has increased the production.
- Scheme for Promotion of Manufacturing of Electronic Components & Semiconductors (SPECS): This offers monetary assistance for those companies producing crucial electronic components such as semiconductors.
- National Policy on Electronics (NPE) 2019: The policy seeks to position India as a global electronics manufacturing hub with a vision to create $400 billion worth of business by 2025 from this sector.
- Electronics Manufacturing Clusters (EMC): The government is assisting in the development of special zones where electronics production units can be established, facilitating business for companies.
- Semiconductor and Display Manufacturing: India is also concentrating on the development of semiconductor (chip) and display technology factories, which are critical for electronics.
Focus areas for growth:
The Indian government is concentrating on priority areas to develop the electronics sector, including:
- Consumer electronics (such as TVs and audio systems)
- IT hardware (such as computers and servers)
- Mobile phones and components
- Automobile electronics
- Wearables (such as smartwatches and fitness trackers)
- Telecom equipment
These industries are likely to generate large opportunities for expansion and make India a top electronics manufacturing nation.
Enhancing infrastructure & generating employment:
India is also enhancing its infrastructure to facilitate the expansion of electronics manufacturing. New Electronics Manufacturing Clusters (EMCs) are being established, and roads, ports, and freight systems are being upgraded by the government to assist companies in exporting their products with ease. These reforms will facilitate the manufacturing and movement of electronics products within India as well as to the rest of the world.
With the industry expanding, more opportunities are being generated. The ECMS is also estimated to generate 91,600 direct employment and additional indirect jobs over the next several years. In order to facilitate this, the government is investing in training schemes to ensure employees possess the skills required for the electronics sector.
India’s future in electronics:
India is poised to be a major player in the international electronics industry. India will account for about 4-5% of electronics exports worldwide by 2030. Foxconn and Samsung are already producing electronics in India, which is encouraging exports. India is also emerging as a chip design leader, a critical segment of the electronics sector.
The Electronics Component Manufacturing Scheme (ECMS) is assisting India in establishing a strong electronics manufacturing base. With government support, an increasing number of workers, and improved infrastructure, India is heading towards being an electronics production hub on a global scale.
