India’s Electronics Push: Firms Pledge Rs 1.15 Lakh Crore Investments Under ECM Scheme, Nearly Twice The Target

The Electronics Component Manufacturing Scheme (ECMS) has received investment commitments of Rs 1.15 lakh crore, nearly double its target of Rs 59,350 crore, the IT Ministry announced.

“Against a production target of Rs 4,56,500 crore, we have received production estimates more than Rs 10,34,000 crore” over the scheme’s six-year tenure, IT Minister Ashwini Vaishnaw said.

The scheme, launched in April with an outlay of Rs 22,919 crore, is aimed at strengthening India’s electronics manufacturing ecosystem beyond finished goods and chip fabrication.

IT Minister said that the employment projections have also surpassed expectations, with 1.41 lakh jobs anticipated against the target of 91,600.

Electro-mechanicals and multi-layer PCBs drew the highest interest.

IT Secretary S Krishnan stated that scrutiny of applications has begun, and funds will be disbursed on a “first come, first served” basis to companies that bring products to market faster.

The window for capital goods applications will remain open until April 2027, given the longer gestation period for heavy equipment manufacturing.

Vaishnaw said the government also plans to support materials manufacturing under the upcoming second phase of the India Semiconductor Mission, which is currently being formulated and has drawn “attractive response from industry.”

In recent months, the scope of incentives has been widened beyond capital support to include semiconductor packaging, phone assembly, and other parts of the electronics value chain.

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