Government unveils Rs 23,000-crore electronics components manufacturing scheme to boost domestic production
NEW DELHI: The Government has released regulations for applications under the Rs 23,000-crore
Electronics Components Manufacturing Scheme
(ECMS), aimed at boosting domestic value addition in electronics production.
Union Electronics and IT Minister
Ashwini Vaishnaw
revealed that firms with strong local design capabilities and 'six sigma' quality standards will be key evaluation factors.
Companies lacking domestic design teams might be 'left out' of the 'phenomenal change' expected in India's electronics sector over the next five years, according to a report by The Economic Times.
Applications for the six-year scheme will open on May 1 through an online portal.
The Union Cabinet, chaired by the Prime Minister, had approved the ECMS earlier this month. The initiative seeks to attract substantial domestic and global investments, develop robust manufacturing capabilities, and integrate Indian companies into Global Value Chains (GVCs).
S Krishnan, Secretary of the Electronics and IT Ministry, asserted that the scheme is timely, coinciding with geopolitical shifts that could redefine global value chains. It is expected to increase India's share in global electronics manufacturing from 3 per cent to 8 per cent over six years, according to him.
The programme targets Rs 59,350 crore in investments, aims to create 91,600 direct jobs, and projects production worth Rs 4,56,500 crore.
It offers a mix of turnover-linked and capital expenditure incentives, depending on component type, with employment generation tied to both incentive structures.
ECMS covers sub-assemblies such as display and camera modules, core components like multilayer PCBs and lithium-ion cells, specific bare components including HDI and MSAP PCBs, as well as supply chain infrastructure and manufacturing equipment.
Application windows differ: three months for sub-assemblies and bare components, and two years for supply chain and capital equipment categories.
Atul Lall, vice chairman and managing director of Dixon Technologies, confirmed plans to invest significantly in at least four component categories under the scheme.
Meanwhile, industry bodies highlighted the need for international collaborations and strong state partnerships to strengthen the electronics ecosystem.
Additionally, Vaishnaw noted India's electronics production and export growth—both witnessing five- and sixfold increases respectively over the past decade—adding momentum to the ECMS.
India's electronics production has surpassed Rs 11 lakh crore (approximately $129 billion) annually. The country is targeting $300 billion by 2026 and $500 billion by 2030-31 in
domestic electronics production
.
Separately, the government announced Bengaluru-based Sarvam AI as the first startup selected to develop an indigenous foundational model under the IndiaAI Mission.
Pankaj Mohindroo, chairman of the India Cellular and Electronics Association (ICEA), predicted that states would launch competitive initiatives to attract investments. He cited the mobile industry's current $62 billion production base, suggesting ECMS will further strengthen India's components and sub-assembly ecosystems.
Ashok Chandak, president of SEMI India and the India Electronics and Semiconductor Association (IESA), described the scheme as critical for boosting manufacturing capabilities while complementing the India Semiconductor Mission.
The ECMS outlines various investment thresholds by component type, offering turnover-linked incentives for investments between Rs 50 crore and Rs 500 crore, alongside additional capex incentives for selected components.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
Master Value & Valuation with ET! Learn to invest smartly & decode financials. Limited seats at 33% off – Enroll now!
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
27 minutes ago
- Hindustan Times
Akal Takht jathedar seeks reopening of Kartarpur Corridor
Giani Kuldeep Singh Gargaj, the acting Akal Takht jathedar, has sought the reopening of the Kartarpur Corridor that facilitates Indian Sikh devotees' pilgrimage to the historic Gurdwara Darbar Sahib in Pakistan. The corridor has remained shut since May 7, when the Indian armed forces launched Operation Sindoor targeting terror hideouts in Pakistan and Pakistan-occupied Kashmir in response to the Pahalgam attack that claimed 26 lives on April 22. (HT file photo) The corridor has remained shut since May 7, when the Indian armed forces launched Operation Sindoor targeting terror hideouts in Pakistan and Pakistan-occupied Kashmir in response to the Pahalgam attack that claimed 26 lives on April 22. Gargaj said ahead of the 'Jyoti Jot Diwas' (death anniversary) of Guru Nanak Dev in September, reopening the Kartarpur Corridor would allow the 'sangat' (congregation) to pay obeisance at the sacred religious site. In a statement issued here, Gargaj called upon the Centre to take swift action to reopen the corridor. The Kartarpur Corridor was opened during the 550th birth anniversary celebrations of Guru Nanak Dev, fulfilling a long-standing demand of the Sikh community to access one of their holiest shrines without a visa. The 4.7-km passage connects Dera Baba Nanak Sahib in India's Gurdaspur and Gurdwara Darbar Sahib in Pakistan's Kartarpur, believed to be the final resting place of Guru Nanak Dev. 'However, due to recent tensions between the two nations, the corridor was closed. The Sikh community and Punjabis have been urging the government to reopen it soon,' Gargaj said. Stating that Punjabis were still enduring the anguish of Partition, Gargaj said such division and bloodshed should never occur anywhere in the world again. He said in remembrance of all Punjabis who were killed in 1947, the Shiromani Gurdwara Parbandhak Committee (SGPC) has been organising 'ardas' (Sikh prayer) at the Akal Takht. He said in 1947, Punjabis, especially Sikhs, on the western side of Punjab, were forced to leave behind their precious and fertile lands due to Partition. They also endured the pain of losing over 200 religious places, including the sacred birthplace of Guru Nanak Dev at Gurdwara Nankana Sahib, Gargaj said.
Time of India
41 minutes ago
- Time of India
Cricket association plan offers fresh hope for stadium stalled for over a decade in Ghaziabad
Ghaziabad: A long-stalled plan to build a cricket stadium in Ghaziabad may finally move forward after the Uttar Pradesh Cricket Association (UPCA) proposed developing it through a public-private partnership. The project, first announced in 2014, had been stuck for years due to disputes with the Ghaziabad Development Authority (GDA) over floor area ratio. In June, chief minister Yogi Adityanath directed the GDA to take over the project on 31 acres of earmarked land. However, officials are now reconsidering after the UPCA's fresh proposal. You Can Also Check: Noida AQI | Weather in Noida | Bank Holidays in Noida | Public Holidays in Noida | Gold Rates Today in Noida | Silver Rates Today in Noida Meanwhile, Rakesh Mishra, UPCA convenor for the stadium committee, said, "We have written to GDA seeking to develop the stadium on a PPP model alongside UPCA. We have the technical expertise in developing stadiums, and it will be UPCA that will decide on the matches that will be held." A GDA official, meanwhile, said, "The UPCA's proposal is being considered, and a decision in this regard will be taken up after consultations with higher officials." While addressing the press, CM Adityanath on June 26 had said that BCCI wanted to make a cricket stadium in Ghaziabad, but due to some reasons, it has not happened. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Could This NEW Collagen Blend Finally Reduce Your Cellulite? Vitauthority Learn More Undo He directed GDA to take up the project, and further said that the stadium will be constructed and managed by the development authority. The moot point between GDA and UPCA, which has led to a stalemate, is the latter's demand that they be granted a higher FAR. As per the rule, the permissible floor area ratio for recreational green land use is 0.10, and UPCA is asking for an FAR between 1.2 and 1.5. The stadium is estimated to be built at Rs 450 crore, out of which Rs 70 crore was spent on acquiring land from farmers by the apex cricket body. Once ready, it will have a capacity to accommodate about 55,000 people. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Time of India
43 minutes ago
- Time of India
Celebrating Freedom with Reforms
Prime Minister Narendra Modi announced a 'Diwali gift' for the people two months ahead of the festival, declaring that the next set of goods and services tax (GST) reforms will be in place by October, besides underscoring a renewed reforms push, emphasising Atmanirbhar (self-reliant) Bharat as the bedrock on which Viksit Bharat will be built by 2047, and unveiling a ₹1-lakh crore jobs programme, among other initiatives. Independence Day 2025 Modi signals new push for tech independence with local chips Before Trump, British used tariffs to kill Indian textile Bank of Azad Hind: When Netaji Subhas Chandra Bose gave India its own currency In his 12th Independence Day speech that lasted 103 minutes, the Prime Minister also assured the nation he will soon declare from the Red Fort that India has become the third-largest economy in the world. Countering the Opposition's charge of high unemployment, Modi also said the PM Viksit Bharat Rozgar Yojana being launched on Independence Day will facilitate the creation of 35 million jobs. On Friday, he said, 'This Diwali, you are going to get a big gift. We are coming with the next generation of GST reforms.' The announcement comes close on the heels of parliamentary approval for two key items of legislation — the Income Tax (No 2) Bill and the Taxation Laws (Amendment) Bill — earlier this week. A total of 280 sections have been abolished in the Income Tax Act. The Prime Minister said the government has decided to constitute a task force to look into the prospects of next-generation economic reforms within a set time frame. 'Current rules, laws, policies, and procedures must be redrafted to suit the 21st century, to fit the global environment and to align with the vision of making Bharat a developed nation by 2047,' he said. The PM said the policy changes will reduce compliance costs, besides boosting startups and small and cottage industries. Other benefits will include a smoother export process, improved logistics and systems, and the abolition of archaic laws that led to imprisonment for minor matters. Modi urged all sections, including political parties, his rivals and fellow leaders, to take part in the efforts to build a bright future. 'I wish to tell my countrymen, everything I am doing, I am doing for the country, not for myself, not to harm anyone,' he said. 'Whether it is structural reforms, regulatory, policy or process reforms, or the need for constitutional reforms, we have made every kind of reform our mission today.' Atmanirbhar Bharat is the bedrock on which Viksit Bharat will be built, he said. The Prime Minister asserted that Operation Sindoor, the Gaganyaan mission and the manufacture of indigenous semiconductors has proved the power of self-reliance. 'The greater a nation's reliance on others, the more its freedom comes into question,' he said. 'Misfortune arises when dependency becomes a habit, when we do not even realise it, when we abandon self-reliance and become dependent on others. This habit is fraught with danger and hence, one must remain vigilant every moment to be self-reliant.' Made in India weapons and defence systems helped India during Operation Sindoor, he asserted. 'The enemy had no inkling of what weapons and capabilities we possessed, what power was destroying them in the blink of an eye,' he said. 'Imagine if we were not self-reliant, could we have executed Operation Sindoor with such swiftness? We would have been plagued by worries over who might supply us, whether we would get the required equipment, and so on.' Modi also announced the Sudarshan Chakra Mission for creating a complete security cover for all civilian installations in the near future. Since the 21st century is a 'technology-driven century,' it is imperative that India does not lag behind, the PM said, adding that every nation that mastered technology scaled the heights of development and attained new dimensions of economic power. He lamented that although India began the process of building infrastructure for semiconductor manufacturing six decades ago, the plan was stalled, delayed and shelved, while other countries mastered the technology and strengthened their position. 'Today, we have freed ourselves from that burden and advanced the work on semiconductors in mission mode,' Modi said. 'Six different semiconductor units are taking shape on the ground, and we have already given the green signal to four new units.' India is becoming self-reliant in space technology as well, he stated. 'We are also preparing for Atmanirbhar Bharat Gaganyaan on our own in space,' the Prime Minister said. 'We are working towards building our own space station. And I am very proud of the reforms done in space recently. More than 300 startups in my country are now working only in the space sector and thousands of youth are working with full potential in those 300 startups.' He also expressed satisfaction at the pace with which the National Manufacturing Mission was progressing and reiterated the importance of the 'vocal for local,' 'zero defect, zero effect' and 'lower price, higher value' themes. Underlining the need for promoting indigenous products, Modi urged all traders and shopkeepers to put up boards, saying 'Swadeshi goods sold here.' 'Today, on August 15th, we are launching and implementing a scheme worth Rs 1 lakh crore for the youth of my country,' he said. 'The Pradhan Mantri Viksit Bharat Rozgar Yojana is being implemented today… Under this scheme, the government will give Rs 15,000 to the youth, to every son or daughter who gets a job in the private sector.' The new jobs programme is expected to create new employment opportunities for approximately 35 million youth. Companies that generate more jobs will also be given incentives under the scheme. The Weight of Eight On the 79th Independence Day, Prime Minister Narendra Modi turned the Red Fort into a launchpad for the next chapter of India's rise. His bold announcements signal a nation ready to leap, not just step, into the future. From making India's first chip to building jet engines, his message was unambiguous: Bharat will set its own terms and aim to become a developed nation by 2047. Eight key announcements include… SEMICON: FROM LOST DECADES TO MISSION MODE Recalling how attempts to set up semiconductor factories 50–60 years ago were 'killed at birth,' the PM said India is now in mission mode. The first Made in India chip will roll out by year-end 10x Nuclear Energy Capacity by 2047 Work is underway on 10 new nuclear reactors as part of India's mission to increase nuclear power generation capacity by over ten times in the next two decades GST Reforms – A Diwali Gift Next-generation GST reforms will be unveiled on Diwali, reducing taxes on essential goods and providing relief to MSMEs, local vendors and consumers Bharat@$10 Trillion The PM said a dedicated Reform Task Force will be set up to drive nextgeneration reforms. Its mandate is to accelerate economic growth, cut red tape, modernise governance, and prepare the country for the demands of a $10-trillion economy by 2047 PM Viksit Bharat Rozgar Yojana A major employment scheme worth Rs 1 lakh cr was launched, under which newly employed youth will receive Rs 15,000. It aims to benefit 3 crore young Indians, making stronger the bridge between Swatantra Bharat and Samriddha Bharat Energy Independence – Samudra Manthan A large share of India's budget still goes toward importing fuel. A National Deepwater Exploration Mission was announced to tap ocean resources, alongside major expansions in solar, hydrogen, hydro and nuclear power High-Powered Demography Mission Highlighting dangers of infiltration and illegal migration, the PM launched a High-Powered Demography Mission to address this national security challenge Made in India Jet Engines – A National Challenge Modi made a dramatic announcement — for India to build its own jet plane engines, just like vaccines and UPI. He asked scientists & youth to take it up as a direct challenge
