The Ministry of Electronics and Information Technology recently revealed the resounding success of its Electronics Component Manufacturing Scheme (ECMS). By the September 30, 2025 deadline for most products, applications for incentives had poured in, committing a remarkable ₹1,15,351 crore in investments. This figure comfortably surpasses the Union Cabinet’s initial target of ₹59,350 crore, indicating immense confidence in India’s growing electronics sector.
Launched in April as a strategic partner to the India Semiconductor Mission, the ECMS boasts an outlay of ₹22,919 crore. It’s designed to offer output- and employment-linked incentives, specifically targeting the expansion of component manufacturing beyond just finished goods and semiconductor fabrication. The scheme’s core objective is to significantly deepen and strengthen the entire value chain of electronics manufacturing across India.
IT Minister Ashwini Vaishnaw shared exciting projections, stating that against a production target of ₹4,56,500 crore over the scheme’s six-year span, the Ministry has received estimates exceeding an astounding ₹10,34,000 crore. Furthermore, the employment outlook is equally promising; while the scheme initially aimed to create 91,600 jobs, the expected employment is now projected to be 1.41 lakh positions, a fantastic one-and-a-half times increase.
Reflecting on the overwhelming response, with a total of 249 applications covering everything from Printed Circuit Boards (PCBs) to complex electronic sub-assemblies, IT Secretary S. Krishnan explained the government’s approach. Funds will be disbursed on a “first come, first served” basis, prioritizing approved companies that can swiftly establish their businesses and bring products to market. He also confirmed that the scrutiny of these applications has already begun, with the Ministry committed to fast-tracking the approval process.
While Minister Vaishnaw opted not to disclose the names or origins of the applying companies, he highlighted that many firms demonstrated interest in manufacturing multiple types of components—a trend the government actively encourages. “Electro-mechanicals” saw the highest number of applicants at 87, followed by “multi-layer PCBs” with 43. Intriguingly, one unnamed company alone committed approximately ₹22,000 crore, underscoring the scale of investment flowing into the sector.
Looking ahead, Mr. Vaishnaw hinted at future developments, stating, “We’re planning to encourage materials also.” This refers to the anticipated second phase of the India Semiconductor Mission, currently being formulated and already generating “attractive response from industry.” The government’s strategy in recent months has clearly been to broaden its incentives, moving beyond just capital support for semiconductor packaging and phone assembly to encompass a wider spectrum of the electronics value chain.
Although the application window has closed for most product categories, the government has strategically kept applications for capital goods—the crucial heavy equipment used in manufacturing facilities—open until April 2027. This extended period acknowledges the longer lead times typically required for this specialized segment of the industry to become fully established.