Ashwini Vaishnaw, Minister of Electronics and Information Technology
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The government on Tuesday published the notification for production-linked incentive scheme for Electronics Component Manufacturing Scheme (ECMS). It will be open for consultation with industry stakeholders for about two weeks.
The Scheme was approved by the Cabinet on March 28 with a funding of ₹22,919 crore to make the country self reliant on passive electronics supply chain.
“It will be put up for consultation so that the guidelines can be framed in consultation with the industry. I think the consultation process will run for about a couple of weeks…hopefully within three weeks the scheme should be up and running,” Ashwini Vaishnaw, Minister of Electronics and Information Technology (MeitY), told reporters here.
The Scheme will be valid for the next six years. It aims to develop a robust passive component (non-semiconductor electronics like resistors, capacitors, inductors) ecosystem by attracting large investments (global/domestic) in electronics component manufacturing ecosystem, increasing domestic value addition (DVA) by developing capacity and capabilities, and integrating Indian companies with global value chains (GVCs), he said.
There will be three components of the incentives — employment-linked incentives (ELI; distinct from existing PLI), capital subsidy: High CapEx, low turnover segments to benefit — and incentives linked to production/ turnover and employability.
Meanwhile, Vaishnaw informed that mobile phone exports from India surpassed ₹2-lakh crore in the FY25 with iPhone shipments alone contributing about ₹1.5 lakh crore. He said that smartphone exports have seen a 54 per cent growth over FY24.
Overall, the electronics production (manufacturing) has grown by more than five times and the electronics exports have grown by six times over the last 10 years, he said. And, in the next five years, both production and exports are expected to grow multi-fold.
“Within a short time-frame the ecosystem, which means the component manufacturers and diversity of the manufacturing ecosystem in the country has substantially and like many other countries who went with this cycle, it all started with finished goods (imports) to begin with and then it moves to assemblies and then moves to components. So we are now at a phase where it is moving to components. In a sense the third phase of our growth,” Vaishnaw said.
He noted that there are more than 400 production units in India now, small and big, which manufacture wide varieties of components.
Vaishnaw said that the current scheme will boost many other sectors with multiplier impact like in Automotive, Medical, Consumer Electronics and Defence.
“Some of the passive components to be manufactured (under the scheme) include resistors, capacitors, speciality ceramics, speakers, microphones, switches, connectors, antennas, vibrator motors, actuators, non-semiconductor sensors, copper foils, cathode/ anode materials, lenses (for cameras), mobile glass covers, and back lights (for mobiles), etc,” Vaishnaw added.
Published on April 8, 2025
