The Indian government has secured investment proposals worth Rs 16,000 crore under the Electronics Component Manufacturing Scheme (ECMS), launched on May 1 with a Rs 22,805-crore outlay, sources revealed. The scheme, aimed at bridging the demand-supply gap in electronic components, has attracted significant interest from both domestic and foreign companies, with approvals expected to be announced in September.

An official source confirmed, “We’ve received proposals worth around Rs 16,000 crore, reflecting strong response from industry players.” Major companies like Tata Electronics, Dixon Technologies, and Foxconn are reportedly among the applicants, with Dixon recently signing deals with Chinese firms Chongqing Yuhai Precision Manufacturing Co Ltd and Kunshan Q Technology’s Indian arm to produce components for devices like mobile phones and laptops.

The ECMS allocates Rs 21,093 crore for sub-assemblies such as camera modules, multi-layered printed circuit boards (PCBs), flexible PCBs, and passive components, while Rs 1,712 crore supports parts for sub-assemblies and capital goods. The scheme categorizes display and camera modules under Category A, bare components like non-SMDs and lithium-ion cells under Category B, and flexible PCBs and SMD passive components under Category C. Category D covers components for these categories and capital goods, with a two-year application window.

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The Electronic Industries Association of India (Elcina) projects a demand-supply deficit of USD 248 billion (Rs 21 lakh crore) by 2030 for electronics inputs, underscoring the scheme’s importance in reducing import dependency to meet a projected USD 500 billion electronics production target. By fostering local manufacturing, the ECMS aims to strengthen India’s electronics ecosystem, drive job creation, and enhance global competitiveness.

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