Why in the news?

  • The Electronics Component Manufacturing Scheme (ECMS) has received applications for incentives in excess of the targets set by the Union Cabinet, said the Ministry of Electronics and Information Technology.

Electronics Component Manufacturing Scheme (ECMS)

  • Ministry: Minister of Electronics and Information Technology 
  • Period: Six years
  • Focus Areas:
    • Focused on setting up semiconductor fabrication units and IT hardware, along with finished goods like mobile phones.
    • The scheme also focuses on capital goods, mainly large machinery that is in and of itself used to manufacture other components.
  • Aim: The scheme aims to boost the value added for electronics goods in India.
  • Features
    • Not based on a production-linked incentive.
    • They will receive incentives pegged to the factory’s turnover and employment creation. 
    • The target is to induce ₹59,350 crore in investments, production worth ₹4,56,500 crore, and the creation of 91,600 direct jobs in the coming years.
    • This scheme is targeted at sub-assemblies (such as controllers for displays and phone cameras), and for so-called “bare components,” which include circuit boards, hardware enclosures, and lithium ion batteries.