Electronic components scheme gets big response with investment proposals of over ₹1.15 lakh crore

Electronic Industries Association of India (ELCINA), the industry body representing electronics manufacturers, expressed deep satisfaction at the phenomenal response by attracting investment proposals over ₹1.15 lakh crore due to Electronic Component Manufacturing Scheme (ECMS).

The association attributed the big response to the government's focus on value-added manufacturing. The scheme received a whopping 249 applications for investment proposals of

about US$ 13 billion. This is twice the envisaged amount of ₹59,000 crore and many more times compared to the domestic investment in components so far.

Welcoming the robust response, Sasi Gandhanam, President, ELCINA, said: “The

success of ECMS reflects the government’s sustained focus on building India’s electronics

ecosystem. The overwhelming participation shows the rising confidence in India as a

manufacturing hub."

Once implemented, these investments are projected to generate over 1.41 lakh new jobs, far exceeding the target of 91,600. This is by far the most favourable outcome among all schemes launched by MeitY for the ESDM sector.

Concerted efforts by MeitY officials and determination engaging with industry has resulted in this thumping success.

With support from MeitY and Niti Aayog, ELCINA worked intensively on formulating the

salient features of ECMS and its members who have keen interest in components are

deeply enthused by this outcome. This confirms the criticality of ELCINA’s long standing belief and demand for a specific and focused policy for electronic components.

Launched with an outlay of ₹22,805 crore, ECMS aims to build a robust ecosystem for

electronics component manufacturing by catalysing investment, boosting domestic

production, and creating large-scale employment opportunities.

The applications received under the scheme project a production value of ₹10.34 lakh crore, over twice the original target of ₹4.6 lakh crore.

Sharing his perspective, Vinod Sharma, MD, Deki Electronics, noted: “ECMS has

attracted proposals that are 6 times the investments made in the sector so far. This pivitol

milestone is reached as a result of wide and detailed consultations by MeitY with

components industry and ELCINA, a pragmatic approach to policy making and an industry

that is keen to contribute to Atmanirbhar Bharat.”

Expressing his delight, Atul Lall, Past President ELCINA and Vice Chairman Dixon

Technologies India Limited opined "ECMS scheme is a harbinger of putting Indian electronics industry on global map with deepened value addition and Indian IP. We at

ELCINA are grateful to Meity for giving us an opportunity to significantly contribute to

ideation of this scheme."

“This is a game changer” remarked Rajoo Goel, Secretary General, ELCINA. He said the scheme has the

potential to boost value addition of India’s electronics manufacturing eco-system from the current 15-20% to 35-40% over next 5 years and beyond.”