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What Is India’s ECMS Scheme 2025, And How Is It Attracting The MSMEs?

Komal Bajpai

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Updated: 21-05-2025 at 3:31 PM

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The government initiated the Electronics Component Manufacturing Scheme (ECMS) on May 1, 2025, to enhance the development of electronics manufacturing in India. Since it aims to reduce the use of imports and build a strong local supply chain, the scheme has received lots of support from MSMEs. The government scheme is consistent with the main aims of 'Atmanirbhar Bharat' and 'Make in India', helping India become a leading country for electronics manufacturing.

Objectives And The Budget

The ECMS isn't just a policy—it's a strategic financial stimulus directed at expanding India's domestic manufacturing ecosystem. Let's explore the key goals and the effective financing mechanism driving this government initiative, as well as what components are eligible and the incentives available to the various segments of electronic manufacturing.

Promote increased local development of electronic components.
Cut down on the products imported into the country.
Help Indian producers add value to international supply networks.
Generate jobs and support the development of the economy.

It has been approved to spend ₹22,919 crore during six years from FY2025–26 to FY2031–32. It tries to attract investments of about ₹59,350 crore, produce products worth about ₹4,56,500 crore and create nearly 91,600 direct jobs.

Robust Response From MSMEs

Between the ECMS launch and two weeks later, it had received 70 applications, and 80% came from MSMEs. The eagerness of these companies demonstrates their willingness to help the country improve its electronics manufacturing. The scheme’s applicants are still unnamed, but industry contacts say that Tata Electronics, Dixon Technologies and Foxconn are in the mix.

Also Read: IC Scheme MSME 2025 - Global Potential For International Cooperation MSME

Incentive Structure And Component Classification

Incentives under ECMS are designed to support electronic manufacturing efforts by segment. Here is how the Government has categorised components and offered financial incentives to create effective growth in the sector.

Incentives linked to employee departures: They are calculated using the company’s revenue.
Most companies incentivise employees by combining several performance indicators.
Linked with tax incentives for making plant and machinery investments.

Beam Design’s Components Are Categorised By Four Key Groups.

The first category includes display and camera systems.
In this category are unmounted elements such as non-surface mount devices, multi-layered circuits, lithium-ion cells and cell cases.
Category C includes flexible PCBs as well as surface-mount device passive components.
Parts for products under Categories A, B and C, as well as electronics manufacturing capital goods, are found in this category.

Timeframe For Applications And The Criteria Considered

Applications for Categories A, B and C could be submitted from May 1, 2025, to July 31, 2025, but Category D will take applications for two years. Interested manufacturers should participate right away since their applications are handled in the order they are received.

Factors that are assessed when reviewing applications are as follows.

There are local teams in charge of designing.
Following Six Sigma quality procedures.
Economic growth, new job opportunities and growing investments.
Help in lowering the need for imports and adding value to goods.

Also Read: Complete Guide To The MSME Sustainable (ZED) Certification Scheme

Addressing The Demand-Supply Gap

According to a survey, the gap between demand and supply of electronic components is forecast to reach $248 billion (approximately ₹21 lakh crore) by 2030, due to the country’s aim of producing electronics worth $500 billion. Instead of being filled through the ECMS, this gap would probably have been made up by buying goods from other countries.

Industry Perspectives

According to Pankaj Mohindroo, who chairs the ICEA, the mobile manufacturing segment of the electronics sector has already contributed much. With the ECMS, the drive for $500 billion in electronics exports will gain new momentum.

Ashok Chandak, head of SEMI IESA, said that the incentives are designed to help the sector by bringing in money from domestic and foreign investors while reducing the need for imports from other countries.

Conclusion

The ECMS is a tactical effort aimed at strengthening India's foothold in global electronics manufacturing. By enabling domestic production in India, supporting MSME participation, and offering specific incentives on the supply chain, ECMS aims to build a self-reliant and strong electronic ecosystem across the country. As the application process continues, the ECMS will be important in the future of electronics manufacturing in India.

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