Athira Sethu
Kochi, 8 July 2025
The Indian government has initiated a new scheme to enhance the production of electronic components and parts in India. The scheme is named the Electronics Components Manufacturing Scheme (ECMS). The scheme opened for receiving applications on May 1, 2025, and will continue for six years from this financial year.
In a span of three months, the government has already received proposals between ₹7,500 crore and ₹8,000 crore. Close to 100 Indian and overseas companies have submitted applications to be included under this scheme. The companies are interested in establishing factories and assembly units in India to produce electronic components.
The ministry of Electronics and Information Technology (MeitY) is handling the scheme. A top ministry official stated that they have initiated scrutiny of the applications and would start inducting them in batches from late August or early September. The government is also making efforts to select a project management agency to assist in the smooth operation of the scheme.
The scheme is distinct from previous ones. Earlier, the government used to provide incentives (additional money or assistance) depending on the amount of sales increase a company made. However, under this new scheme, the emphasis is changed. Now, the companies will be assisted depending on the number of direct jobs they generate and how much they invest in establishing their factories. It implies that firms that employ more individuals and invest more capital in constructing or modernizing their production facilities will receive more assistance.
The intention of this scheme is to establish India as a world hub for electronics production, particularly small but significant electronic components. These components are utilized in devices such as mobile phones, laptops, washing machines, and other electronic appliances. Currently, India continues to import most of these components from foreign countries. The government is looking to curb imports and produce more of these components domestically.
By prompting companies to set up manufacturing units in India and generate employment opportunities, the government believes this scheme will boost the economy, generate jobs, and make India less dependent on imports in the electronics industry.
The scheme is likely to gain even greater interest once approval starts and the initial projects start rolling later this year.
