India’s ECMS Pipeline Expanded, 29 New Proposals For ₹7,104 Cr Okayed

CW Bureau ·

The Union Ministry of Electronics and Information Technology (MeitY) has approved 29 additional proposals under the Electronics Components Manufacturing Scheme (ECMS).  This is in continuation of the earlier approval of 46 applications worth ₹54,567 crore.

These fresh approvals entail a projected investment of ₹7,104 crore and are expected to drive production worth ₹84,515 crore. The initiative is also likely to generate 14,246 direct employment opportunities, further strengthening India’s electronics manufacturing ecosystem.

Diverse product portfolio across sectors

The newly approved proposals span the manufacturing of 16 product categories with cross-sectoral applications across mobile manufacturing, telecom, consumer electronics, strategic electronics, automotive, and IT hardware segments.

The product mix includes display modules, antennas, capacitors, connectors, heat sinks, lithium-ion cells, relays, resistors, transducers, SMD passives, flexible printed circuit boards (PCBs), and inductors, reflecting a broad-based push to deepen component-level manufacturing in India.

First-of-its-kind manufacturing facilities

Notably, the approvals mark the establishment of several first-of-their-kind facilities in the country. These include India’s first SMD passive plant for tantalum-based capacitors, the first flexible PCB manufacturing plant, and the first rare earth permanent magnet facility.

These developments are expected to reduce import dependence and enhance domestic value addition across critical segments of the electronics supply chain.

Government’s four-pillar strategy

Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, outlined four key priority areas for advancing the electronics manufacturing sector. He emphasised the need to build strong in-house design capabilities, either independently or through collaborations with companies, universities, and research institutions, to ensure deeper value capture within the country.

He also called for the development of a robust domestic supply chain through coordinated buyer-seller arrangements, with a potential preference for indigenous capital equipment manufacturers so that domestic players gain greater opportunities.

Further, he stressed the importance of implementing Six Sigma quality programmes through industry-wide collaboration to achieve global competitiveness and maintain high standards. In addition, he underscored the need for structured workforce development, suggesting the establishment of four to five focused training centres, each with the capacity to train at least 5,000 individuals, to create a steady pipeline of skilled manpower.

Industry execution key to success

Krishnan, Secretary, MeitY, noted that ECMS has witnessed one of its most successful launches, generating strong industry interest, which the government has matched with faster approvals. He added that the government now expects the industry to maintain the same pace in implementation.

He further highlighted that opportunities remain open, particularly in capital equipment and upstream supply chains, and urged stakeholders to leverage the scheme to build resilient and diversified supply chains, especially in the context of the current geopolitical environment.

Industry welcomes enhanced focus

Pankaj Mahindroo, Chairman, India Cellular & Electronics Association (ICEA), welcomed the enhanced ECMS outlay announced in the latest Union Budget. He said that the increase in the scheme’s outlay to ₹40,000 crore, backed by the strong performance of the PLI scheme in mobile manufacturing, reinforces confidence in ECMS’s rapid growth trajectory.

Cumulative impact of ECMS

With these latest approvals, a total of 75 applications have been cleared under ECMS, translating into an expected investment of ₹61,671 crore and the creation of 65,040 direct jobs. The scheme continues to play a crucial role in strengthening India’s position in the global electronics manufacturing value chain.