249 firms apply under Electronics Component Scheme, signalling strong push for ‘Make in India’ electronics

THEBUSINESSBYTES BUREAU

NEW DELHI, OCTOBER 2, 2025

The government has received an overwhelming 249 applications under the Electronics Component Manufacturing Scheme (ECMS), marking a significant milestone in India’s push to strengthen its domestic electronics value chain, the Ministry of Electronics and Information Technology (MeitY) said on Thursday.

The applications span a wide spectrum of products—from printed circuit boards (PCBs) and sub-assemblies to electro-mechanical components — reflecting a strong industry response to the government’s efforts to boost local manufacturing. According to the Ministry, electro-mechanical components and multi-layer PCBs have drawn the highest number of proposals, with 87 and 43 applications, respectively.

While IT Minister Ashwini Vaishnaw did not reveal the names of the companies, he confirmed that several firms have sought incentives for multiple categories of components. One applicant alone has committed an investment of approximately ₹22,000 crore, underscoring industry confidence in India’s electronics ecosystem.

Launched in April this year with an outlay of ₹22,919 crore, the ECMS is designed as a complement to the India Semiconductor Mission. It offers output- and employment-linked incentives to eligible manufacturers to encourage component production—an area long considered the missing link in India’s electronics manufacturing story.

IT Secretary S. Krishnan said that the government would award incentives on a “first-come, first-served” basis, adding that companies able to operationalize their facilities and bring products to market faster would receive payouts earlier. “Scrutiny has started for these applicants, and the Ministry will fast-track the approval process,” Krishnan said.

Although the window for most product categories has closed, applications for capital goods — covering heavy manufacturing equipment—will remain open until April 2027, given the longer gestation period required for such projects.

In a forward-looking move, the government also plans to extend incentives to material production under the forthcoming second phase of the India Semiconductor Mission, aimed at creating a robust and self-reliant electronics manufacturing ecosystem.

The surge of interest under ECMS reflects growing investor confidence in India’s ambition to emerge as a global hub for electronics manufacturing, shifting from being a major consumer of imported goods to a key producer in the global supply chain.