Centre unveils guidelines for ₹22,919 cr electronics manufacturing scheme
New Delhi, Apr 26, 2025
Union Minister Ashwini Vaishnaw rolled out guidelines for the Electronics Component Manufacturing Scheme to boost domestic manufacturing, attract investments, and build a strong electronics ecosystem
Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, released the guidelines and portal for the Electronics Component Manufacturing Scheme (ECMS) on Saturday (April 26). The scheme has a budget outlay of ₹22,919 crore and a run duration of six years (FY 2025-26 to FY 2031-32, including a gestation period of one year). It aims to promote domestic manufacturing, attract large-scale investments, and connect Indian firms with global value chains, according to a statement issued by the Ministry of Electronics & IT (MeitY).
Addressing the launch ceremony, Vaishnaw outlined the government's step-by-step plan to develop the electronics industry. He explained that India initially focused on assembling finished products to gain scale and confidence. This was followed by progress in module manufacturing, component making, and now materials production. "Eighty to eighty-five per cent of the value chain is of finished goods," he said, highlighting the "phenomenal" scale India has already achieved.
Highlighting the sector’s tremendous growth, he noted that electronics production has multiplied fivefold, and exports have grown over sixfold in the last decade. The export CAGR has exceeded 20 per cent, while the production CAGR has been over 17 per cent. Vaishnaw added that major segments such as mobile phones, servers, laptops, and IT hardware have shown strong momentum, positioning India for even greater success.
ECMS: A holistic push across industries
Vaishnaw described ECMS as a horizontal scheme that will not only benefit the electronics industry but also support the industrial, power, and automotive sectors. He added that a full-fledged ecosystem for electronics manufacturing is now emerging across India.
Stressing the need for innovation and quality, Vaishnaw urged companies to build their own design capabilities and aim for Six Sigma levels. Participants who fail to meet the quality standards, he said, would be "cut short," reinforcing the government’s commitment to ensuring that Indian manufacturing competes globally in both volume and excellence.
In addition to production, the minister highlighted India's growing leadership in data-driven technologies and artificial intelligence (AI). He mentioned that 350 datasets have already been hosted on AI Kosh, and four AI tools developed by IITs are to be launched soon. Furthermore, techno-legal frameworks are being created to accelerate the electronics ecosystem.
The event also marked the announcement of Sarvam AI being selected to create India’s first native AI foundational model — a historic milestone in the country's AI capabilities.
Robust industry and government partnership
The launch event witnessed participation from over 200 key stakeholders, including senior officials from the Government of India, state governments, embassy representatives, industry leaders, financial institutions, consulting firms, and media organisations. Their presence reflected the strong domestic and international interest in India's component manufacturing ambitions.
A presentation at the event outlined the unique aspects of ECMS. For the first time, hybrid incentives will be offered, directly linked to employment generation and economic growth. The scheme goes beyond traditional support for components and subassemblies, also incentivising capital equipment and machinery that stimulate manufacturing, thereby strengthening the entire supply base.
ECMS will operate on a "first-come, first-serve" basis to promote efficiency and timely action. The guidelines have been deliberately crafted to be simple, transparent, and business-friendly, ensuring easy compliance and fostering a competitive yet accessible environment.
Industry leaders welcomed the efficient roll-out of earlier Production-Linked Incentive (PLI) schemes managed by the MeitY, citing the smooth and timely release of incentives as a key factor that has built industry confidence. At the start of the event, Vaishnaw and all other attendees observed a minute of silence to honour the victims of the recent terror attack in Pahalgam.
[The Business Standard]
