On September 12, 2025, the ECMS Central government secured an impressive investment exceeding ₹19,000 crore from around 150 companies under the Electronics Component Manufacturing Scheme (ECMS). This considerable interest, especially from numerous small to mid-sized electronics supply chain manufacturers, underscores the scheme’s significant attractiveness.

Engagement from Minor Participants

Small manufacturers focusing on electronic items, such as multilayer printed circuit boards (PCBs), are getting involved extensively. This initiative aims to motivate these companies to help grow India’s domestic electronic components sector. To qualify under specific categories of this scheme, applicants are required to meet a minimum revenue criteria of ₹50 crore to demonstrate their financial stability.

Application Window and ECMS Timeline

A budget allocation of ₹22,900 crore has been designated for the ECMS, with application submissions starting from May 1. Originally intended to last only three months, the timeframe was extended by an additional two months due to encouraging responses. This extension primarily aims to accommodate smaller firms that require more time to secure input materials, forge partnerships, and gain access to technology. The final deadline for application submissions is set for September 30.

Focused Market Categories

ECMS aims to promote a range of product categories within electronics. The focus is on priority areas such as bare and multilayer PCBs, non-mobility lithium-ion cells, electromechanical items and passive components such as resistors, capacitors, inductors and sub-assemblies of cameras and displays. The scheme will also extend help in terms of capital equipment setup and related manufacturing inputs. 

Challenges with Raw Materials and Cost Headwinds

A significant difficulty confronting the industry is the escalating costs of raw materials, especially those that are imported. Nearly every other month, prices surge by 8–9% for imported components like copper-clad laminates (CCL), crucial for producing PCBs, creating a substantial issue. This unpredictability in cost structures consequently diminishes profitability.

Goals for manufacturing and workforce opportunities

The government aims to attract investments totaling approximately ₹59,350 crore, supporting production estimated at around ₹4,56,500 crore and creating about 91,600 direct job opportunities. In addition to these efforts, discussions are underway about generating further indirect employment. By 2026, an increase in domestic output across various component segments is anticipated, likely leading to a decreased reliance on imports.