Why in the news?

• The Ministry of Electronics and Information Technology (MeitY) said it approved 17 new projects under the Electronics Component Manufacturing Scheme (ECMS), where rms will receive incentive payouts pegged to turnover.

Electronics Component Manufacturing Scheme (ECMS)

• What is it?:
  • These projects aim to strengthen India’s electronics components materials manufacturing capacity (e.g., PCBs, camera modules, copper-clad laminates, polypropylene films).
  • The move aligns with India’s objective of transitioning from assembling end-products to manufacturing modules, components, materials and machinery in the electronics value chain.
• Objectives:
  • To develop a robust electronics component manufacturing ecosystem in India.
  • Attract large global and domestic investments across the electronics value chain.
  • Enhance domestic value addition in electronic components manufacturing.
  • Integrate India’s electronics industry with global value chains.
• Key Features:
  • Implementation: Launched in April 2025 by the Ministry of Electronics and Information Technology (MeiTY).
  • Financial Outlay: ₹22,919 crore
  • Scheme Duration: 6 years with one year optional gestation period (FY 2025-26 to FY 2031-32).
  • Implemented through a nodal Project Management Agency (PMA) under MeiTY.
• Target Segments:
  • Subassemblies (e.g., display modules, camera modules)
  • Bare components (e.g., multilayer printed circuit boards – PCBs)
  • Selected bare components (e.g., flexible printed circuit boards)
  • Supply chain ecosystem and capital equipment for electronics manufacturing
• Incentive Structure:
  • Turnover-linked incentives (on incremental turnover/sales) for sub-assemblies and bare components
  • Capex-linked incentives (on eligible capital expenditure) for supply chain ecosystem and capital equipment
  • Hybrid incentives (both turnover and capex linked) for selected bare components
  • Incentives contingent on employment generation
  • Distributed on a first-come, first-served basis