Electronics Components Manufacturing Scheme (ECMS)

Current Context: The Government of India launched the Electronics Components Manufacturing Scheme (ECMS) with an outlay of ₹22,919 crore to boost local production of passive electronic components and enhance India’s role in global supply chains.

Key Facts:

Objective:

• Develop domestic manufacturing of resistors, capacitors, inductors.
• Increase value addition and promote a self-reliant supply chain.
• Integrate Indian manufacturers into Global Value Chains (GVCs).

Incentives under ECMS:

• Employment-Linked Incentives (ELI) – to boost job creation.
• Capital Subsidies – for high Capital Expenditure (CapEx), low-turnover industries.
• Production & Turnover-Based Incentives – to increase output.
• Export Growth: In Financial Year (FY) 2025, smartphone exports crossed ₹2 lakh crore; iPhones alone contributed ₹1.5 lakh crore.
• Over a decade: 5x growth in electronics production, 6x increase in exports.