The Electronics Component Manufacturing Scheme (ECMS)

• Manish Kumar
• 31 Mar 2026
• 167 Views

The Electronics Component Manufacturing Scheme (ECMS) is a scheme that offers financial incentives for manufacturing electronic components in India. It was launched by the Ministry of Electronics and Information Technology (MeitY) in April, 2025.

Following the earlier approval of 46 applications totaling Rs 54,567 crore, MeitY has now approved an additional 29 proposals under the ECMS, with a projected investment of Rs 7,104 crore and an anticipated production value of Rs 84,515 crore. These new approvals are expected to create 14,246 direct employment opportunities.

Products Covered under ECMS Approvals

The current approvals cover the manufacturing of 16 products that have cross-sectoral applications, including mobile manufacturing, telecom, consumer electronics, strategic electronics, automotive and IT hardware products. Here are the details of 16 products :- 

• 1 sub-assemblies: Display Modules

• 11 bare components: Antennas, Capacitors, Connectors, Heat Sinks, Li-ion Cells, Relays, Resistors, Transducers, SMD Passives, Flexible PCB and Inductors

• 3 supply chain items: Laminates, Metallized films for Capacitors and Rare Earth Permanent Magnets

• Capital Goods and their parts

It is noteworthy to mention that these approvals include the country's first SMD passive plant for tantalum-based capacitors, the first flexible PCB plant and the first Rare Earth Permanent Magnet facility.

Core Priority Areas for Electronics Manufacturing

While speaking on the occasion, Shri Ashwini Vaishnaw, Union Minister for Electronics and Information Technology, highlighted a total of four core priority areas for electronics manufacturing. Here are priority areas he highlighted :-

• First, he placed emphasis on the requirement to build strong in-house design capabilities, either independently or through a collaborative approach with other businesses, universities and institutions to ensure deeper value capture within India.

• Second, the Union Minister called for the development of a robust domestic supply chain, which could include coordinated buyer-seller arrangements. He suggested a possible preference for indigenous capital equipment manufacturers to provide more opportunities for domestic producers. 

• Third, he highlighted the need for the implementation of Six Sigma quality programs via industry-wide collaboration to enhance global competitiveness as well as to maintain high standards. 

• Fourth, he stressed the necessity of a structured workforce development initiative and proposed the establishment of 4 to 5 specialized training centers, each capable of training at least 5,000 individuals to create a steady pipeline of skilled workers within the sector.

Company-wise Approvals under ECMS

Approvals for the manufacturing of Display Modules have been granted to Dixon Display Technologies Pvt. Ltd. and Wangda Technologies Pvt. Ltd in the sub-assembly category. In the components category, approvals for manufacturing have been issued as follows :-

• Antenna and Heat Sink to VVDN Technologies Pvt. Ltd.

• Connectors to Molex (India) Pvt. Ltd., a global leader in electronic and fiber optic connectivity systems; Terminal Technologies; SFO Technologies India Pvt. Ltd.; and Amphenol FCI India Pvt. Ltd., one of the world's largest designers and manufacturers of high-technology interconnect.

• Relays to O/E/N India Ltd.; Permanent Magnets Ltd; BG Electrical and Electronics India Ltd.; and SFO Technologies India Pvt. Ltd.

• Non-SMD & SMD Passive capacitors to Vishay Components India Pvt. Ltd., a premier global manufacturer of discrete semiconductors and passive electronic components.

• Li-ion cell for digital applications to Munoth Lithium Battery Pvt. Ltd.

• Resistors and Transducers to Vishay Precision Transducers India Pvt. Ltd.

• Inductors to TDK India Pvt. Ltd., a major global manufacturer of electronic components and systems.

• Flexible PCBs to Syrma Strategic Electronics Pvt. Ltd.

In addition to the above, approvals have been granted for the manufacturing of various products to deepen the electronics manufacturing supply chain. The details of the said approvals are as follows :-

• Laminate (Copper Clad) to Syrma Components Pvt. Ltd. and Ratnaveer Precision Engineering Ltd. Laminate is base material for PCB manufacturing and constitutes a significant part (~30%) of the bill of materials of PCB manufacturing.

• Metallised film for capacitors to Dhruv Industries Ltd.

• Rare Earth Permanent Magnets to Lohum Cleantech Pvt. Ltd. Notably, this is the 1st project for manufacturing Rare Earth Permanent Magnets from Rare Earth Oxide. It marks a major step towards development of indigenous capabilities in advanced materials.

Approvals by MeitY on 30 March 2026 witnessed special emphasis on development of manufacturing capability in capital equipment. A total of 6 entities received the approvals :-

• Titan Engineering & Automation Ltd.

• NeST Advanced Technology Development Centre Pvt. Ltd.

• ASM Technologies Ltd.

• Indo-MIM Ltd.; Bharat FIH Ltd.

• IFB Industries Ltd.

It is anticipated that these approvals will enhance domestic value addition by strengthening local supply chains, reducing reliance on imports of critical electronic components and allowing the development of advanced manufacturing capability within our country. With these approvals, a total of 75 applications have been approved under ECMS amounting to an expected investment of Rs 61,671 crores and anticipated direct employment for 65,040 individuals.

Source:- Press Information Bureau (PIB)