Syllabus:
GS-3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Context: Recently, Government of India approved first batch of 7 projects with investment of over ₹5500 crores under Electronics Components Manufacturing Scheme (ECMS).
More on the News
• The move marks a major step in India’s journey from making finished products to manufacturing modules, components, materials & machineries used to manufacture them.
• These projects are geographically spread across Tamil Nadu (5), Andhra Pradesh (1), and Madhya Pradesh (1), promoting balanced regional development beyond metropolitan hubs.
• Multi-Layer Printed Circuit Boards (PCBs), HDI PCBs, Camera Modules, Copper Clad Laminates, and Polypropylene Films will be Made in India by private players.
• It is estimated that this phase will meet about 20% of domestic demand for PCBs and 15% for camera module sub-assemblies, with a substantial share of production aimed for export (estimated 60%).
About Electronics Components Manufacturing Scheme
• ECMS was notified in April 2025 with a budgetary outlay of ₹22,919 crore and a duration of six years, plus an optional gestation year.
• It is India’s first dedicated Production Linked Incentive (PLI) scheme focused exclusively on augmenting the electronics components manufacturing sector.
• The scheme aims to create a self-sustaining ecosystem that attracts both domestic and global investments, increases domestic value addition (DVA), and integrates Indian players into global supply chains.
• A hybrid incentive model provides turnover-linked and capital expenditure (Capex)-linked incentives, combined with job creation incentives, to promote investments and employment generation.
Economic Significance
• Driving India’s Vision of a Product Nation: The scheme is a major step toward making India a global hub for electronics manufacturing and achieving the goal of a self-reliant “Product Nation” with complete design, production, and export capabilities.
• Enhancing Supply Chain Resilience: ECMS strengthens the domestic electronics supply chain, reducing dependence on imports and addressing vulnerabilities revealed during global disruptions.
• Building Core Manufacturing Capabilities: By promoting base material and component manufacturing, the scheme enhances technological innovation and fosters deeper integration within the electronics value chain.
• Promoting Regional and Inclusive Industrial Growth: The creation of high-tech manufacturing clusters under ECMS encourages balanced regional development while generating skilled employment opportunities.
• Enabling Strategic and Emerging Sectors: ECMS is pivotal for advancing India’s capabilities in critical sectors such as defense electronics, telecom infrastructure (including 5G), electric mobility, and renewable energy.