ECMS Expands to ₹40,000 Crore as 106 Component Projects Take Shape

India's push to build a domestic electronics supply chain is moving from policy design to factory floors, with the Electronics Component Manufacturing Scheme (ECMS) now backing 106 approved projects spread across 15 states.

From assembly to components

Electronics underpin communication, healthcare, transport, finance, manufacturing and digital infrastructure, and a domestic ecosystem is seen as central to technological resilience and economic security. India's electronics production rose from ₹1.9 lakh crore in 2014–15 to ₹13.11 lakh crore in 2025–26, while exports climbed from over ₹38,000 crore to ₹4.24 lakh crore over the same period.

The next stage of that journey depends on reducing reliance on imports of printed circuit boards, camera and display modules, connectors, capacitors, lithium-ion cells and rare-earth magnets. ECMS is designed to support manufacturing of components, sub-assemblies, supply-chain products and related capital goods, raising domestic value addition along the way.

Scheme design and funding

Notified on 8 April 2025 with an initial outlay of ₹22,919 crore, the scheme runs for six years with an optional one-year gestation period and offers a capex incentive for five years. The Union Budget 2026–27 raised the ECMS outlay to ₹40,000 crore, a step aimed at deepening component manufacturing further.

Progress on the ground

As of August 2026, the approved projects span 30 electronic domain products and involve an approved investment of ₹69,548 crore. Production is already under way at 38 approved plants, while another 16 projects are at advanced stages of construction or machinery installation.

The approved projects are expected to generate ₹5.34 lakh crore in production, along with an estimated 74,628 direct jobs and 2.5 lakh indirect jobs. Domestic capacity now meets or exceeds demand in several product categories.

Wider policy framework

ECMS sits alongside a broader set of measures, including the National Policy on Electronics 2019, which set the goal of making India a global hub for Electronics System Design and Manufacturing. Other instruments include the Production Linked Incentive schemes for large-scale electronics and IT hardware, SPECS and EMC 2.0, the Electronics Manufacturing Clusters scheme, the Phased Manufacturing Programme and the Electronics Development Fund.

In the semiconductor segment, the ₹76,000-crore Semicon 1.0 programme built support for fabs, packaging, testing and design, and Semicon 2.0 was approved in July 2026 with a ₹1,27,500 crore outlay. SEMICON India 2026, themed "Silicon to Systems: Building the Ecosystem," was inaugurated by Prime Minister Narendra Modi at Yashobhoomi, New Delhi, on 17 September 2026 and runs through 19 September, bringing together industry, policymakers, investors, academia and start-ups.

The 2030 target

With electronics exports emerging as a major category, India is aiming for a $500 billion (₹47.75 lakh crore) domestic electronics manufacturing ecosystem and $150 billion (₹14.33 lakh crore) in electronics exports by 2030.