What is the ECMS Scheme that Attracts 70 Applications in 15 Days

The Government of India launched the Electronic Components Manufacturing Scheme (ECMS) with a budget of RS 22,919 crore. This scheme has successfully acquired significant interest, receiving 70 applications within half a month, 80% of which are from Micro, Small, and Medium Enterprises (MSMEs).

Ashwini Vaishnaw, Minister of Railways of India, said to PTI, "The Electronic Component Manufacturing Scheme has received tremendous response. Within 15 days of opening the application, around 70 applications have come."

It is still unknown what the names of the applicants are. However, through earlier sources, it is known that giant players have also applied. Companies like Tata Electronics, Dixon Technologies, and Foxconn are among them.

Though the Minister said, "80% of the applications have come from Small and medium enterprises."

What is the ECMS Scheme

The objective of this ECMS scheme was to bolster domestic production of electronic components, reduce import dependence, and integrate Indian companies into global value chains.

• Financial Outlay: This scheme was approved outlay of RS 22,919 Crore for a six-year period from FY26 to FY32.

• Targeted Investments and Outcomes: ECMS successfully attract investments of RS 59,350 crore and creates nearly 91600 direct jobs. This scheme also aims to generate a production worth of RS 4,56,500 crore.

• Incentive Structure: Offers a mix of turnover-linked incentives, hybrid incentives, and capital expenditure incentives, customised for particular types of components.

This Scheme encourages the manufacturing of components such as display modules, camera modules, multi-layer PCBs, lithium-ion cells, and other critical electronic parts.

The scheme puts importance on companies establishing local design teams and achieving Six Sigma quality standards, which, though not official requirements, are seen as positive aspects during evaluations.

Here is the link to the ECMS portal- https://ecms.meity.gov.in/

What do experts say about this scheme?

Pankaj Mohindroo, the chairman of the Indian Cellular and Electronics Association (ICEA), said to The Economic Times that this initiative would both enhance India's electronics supply chain and foster robust domestic players capable of competing on a global scale. 

"The electronic sector has already made a mark, especially in mobile manufacturing. The ECMS will build on that momentum and help realise the dream of $500 billion in electronics production," said Pankaj Mohindroo.

Ashok Chandak, President of SEMI IESA, praised the scheme, stating, "The financial incentives, based on the unique needs of each segment, would drive domestic and foreign investment into the sector, reduce India's dependency on imports, and integrate the country's manufacturing ecosystem into the global value chain

 Government Schemes | Electronic Commerce