What Makes India’s Electronics Components Scheme Attract Double the Expected Proposals?

India’s ambition to carve out a commanding space in the global electronics industry just received a dramatic validation. The recently launched Electronics Components Manufacturing Scheme (ECMS) has managed to draw investment proposals worth ₹1.15 lakh crore—almost double its original target of ₹59,350 crore.

For a scheme that was greenlit only in March this year and notified in April, such overwhelming response raises an important question: what exactly is driving this extraordinary investor confidence?

ECMS: A Scheme That Outperformed Before It Even Began

When Union IT and Communications Minister Ashwini Vaishnaw revealed the numbers, the message was clear: India’s electronics journey is no longer about incremental steps but about rapid acceleration.

• Proposals worth: ₹1.15 lakh crore (vs. target ₹59,350 crore)

• Production estimates submitted: ₹10.34 lakh crore (vs. target ₹4.5 lakh crore)

• Jobs expected: 1.41 lakh (vs. 91,600 targeted)

• Government incentives likely: ₹41,468 crore (vs. ₹22,805 crore planned)

In Vaishnaw’s words, “The investment applications of more than ₹1 lakh crore under the ECMS clearly show Prime Minister Narendra Modi’s focus on electronics manufacturing and the trust the world has developed in India over the last 11 years. This trust is resulting in investment, employment, and extra production.”

The surge in interest is not merely about numbers—it is about the changing perception of India as a serious, reliable, and long-term player in global electronics supply chains.

Why Investors Are Betting Big

1. The Missing Piece: Components, Not Just Assembly

For years, India’s electronics sector has been largely assembly-driven. Smartphones, laptops, and consumer electronics were being put together domestically, but the key components—the chips, PCBs, passives, and raw materials—were still heavily imported, largely from China, Taiwan, and South Korea.

The ECMS directly addresses this gap by focusing on core electronic components manufacturing, making India less vulnerable to external shocks and creating more value domestically.

2. MSMEs Take the Lead

A striking detail from the ministry’s data is that 60% of applications came from MSMEs. This shows that the scheme isn’t just a playground for big corporates but has mobilized India’s vast base of small and medium innovators. Their entry signals a democratization of opportunities in a sector long dominated by global giants.

3. First-Time Investments in Advanced Domains

For the first time, India has received credible proposals in areas like:

• Surface Mount Device (SMD) passives

• Laminates

• Flexible Printed Circuit Boards (PCBs)

• Anodes

• Capital equipment

These are upstream, high-value components that form the backbone of advanced electronics. The scheme is therefore not just bringing incremental capacity but is enabling India to climb higher up the electronics value chain.

4. Record Commitment by a Single Player

The ECMS has also set a new benchmark by attracting India’s largest-ever investment commitment of ₹22,000 crore from a single player. Such scale sends a strong signal of confidence to the rest of the industry.

What Exactly is ECMS?

Approved by the Union Cabinet in March 2025 and formally notified in April 2025, the Electronics Components Manufacturing Scheme is a six-year initiative with a one-year gestation period.

Its central mission: to help India build a $500 billion electronics component manufacturing ecosystem by FY32.

The Incentives on Offer

The scheme is structured to attract both big-ticket players and emerging innovators through a flexible incentive framework:

• Turnover-linked incentives

• Capex-linked incentives

• Hybrid incentives (a mix of both)

• Employment-linked incentives

This ensures that companies of different sizes and stages of growth can find a model that suits them. Applications for the capital equipment segment remain open until April 2027, keeping the window wide for late movers.

India’s Electronics Growth Story

The ECMS sits atop a decade-long surge in India’s electronics sector. Consider this trajectory:

• FY15: Electronics production stood at just ₹1.9 lakh crore.

• FY24: The figure had grown nearly five times to ₹9.52 lakh crore.

• FY25: It jumped further to ₹11.3 lakh crore.

Foreign interest has been equally robust. Since FY21, the country has attracted over $4 billion in FDI in electronics manufacturing, with 70% of this flowing into PLI-supported companies.

Clearly, global manufacturers are not just watching India’s rise—they are actively betting on it.

Why This Matters

The response to the ECMS is more than just an economic milestone—it signals a structural shift in India’s industrial strategy.

1. Reducing import dependence: By targeting component manufacturing, India cuts its reliance on global suppliers for critical parts.

2. Building supply chain resilience: In an era of disrupted trade and shifting geopolitics, India offers an alternative hub for electronics.

3. Job creation: With over 1.4 lakh jobs expected, the scheme adds a strong employment dimension to India’s manufacturing push.

4. Global positioning: By entering advanced component domains, India moves from being an assembler to a true manufacturing powerhouse.

While the ECMS has already bagged double the expected proposals, the challenge will now shift to execution. Manufacturing advanced components requires world-class infrastructure, deep R&D, and consistent policy support. The minister himself admitted that the “next logical step” will be to manufacture raw materials domestically, which remains India’s next frontier.

But if the early response is any indication, India’s electronics ecosystem is on the verge of a transformation. The ECMS, with its record-breaking numbers, may well be remembered as the scheme that redefined India’s place in global electronics manufacturing.