Wired for Success: India's Bold Move to Electrify the Electronics Sector

As part of an extensive initiative to secure India's place in the international electronics sector, the Central Government has launched the Electronics Component Manufacturing Scheme (ECMS), with a substantial budget of ₹22,919 crore. The scheme, announced by Union Minister Ashwini Vaishnaw, is planned to be in operation from FY 2025-26 to FY 2031-32 and aims to attract large-scale investments, boost domestic manufacturing, and connect Indian companies with global value chains.

 

The ECMS is directed specifically towards essential segments like modules for displays and cameras, bare components, electro-mechanical components, multilayer printed circuit boards (PCB), and lithium-ion cells. It publishes a combination of turnover-linked, capex-linked, and hybrid incentives designed to meet each sector's requirements, with all applicants required to create employment. The initiative is expected to generate over 91,600 direct jobs in the sector, and significant indirect employment, while leveraging ₹59,350 crore of investment to deliver an output of ₹4.56 trillion.

 

Finally, the scheme underlines support for tooling and capital equipment industries for a more integrated and competitive manufacturing ecosystem. Since 2015, electronics production and exports have increased by fivefold and sixfold respectively, and the ECMS will reduce dependency on key global suppliers, foster innovation and enhance India's role as a leader in the global electronics supply chain.

 

Source: India Briefing, Press Information Bureau, Business Today