logo

Government’s ECMS Scheme Draws 150 Proposals, ₹19,000 Cr Value

By Shishta Dutta | Updated at: Sep 12, 2025 06:05 PM IST

Government’s ECMS Scheme Draws 150 Proposals, ₹19,000 Cr Value
Open Free Demat Account

By signing up I certify terms, conditions & privacy policy

Mumbai, September 12, 2025: The Central government has received a monumental investment of over ₹19,000 crore from 150 companies under the Electronics Component Manufacturing Scheme (ECMS). Many small and mid-sized manufacturers of electronics supply chain have shown a keen interest, thus highlighting the strong appeal that the scheme holds.   

Active Participation from Small Players 

Small manufacturers working on electronic products like multilayer printed circuit boards (PCBs) are participating on a large scale. The scheme has been designed to encourage such firms, in order to expand India’s local electronic components industry. For certain categories in this scheme, applicants must meet the minimum revenue threshold of ₹50 crore to confirm their financial stability. 

ECMS Timeline and Application Window 

A budget support of ₹22,900 crore has been allocated to the ECMS and applications were being accepted from May 1 onwards. what was initially designed for just three months, looking at the positive response, the window has been extended by two more months. The main reason for this extension is that smaller firms need extra time to secure input materials, partnerships and technology access. September 30 will be the final deadline for submission of applications. 

Target Product Segments 

ECMS aims to promote a range of product categories within electronics. The focus is on priority areas such as bare and multilayer PCBs, non-mobility lithium-ion cells, electromechanical items and passive components such as resistors, capacitors, inductors and sub-assemblies of cameras and displays. The scheme will also extend help in terms of capital equipment setup and related manufacturing inputs. 

Cost Headwinds and Raw Material Challenges 

One major challenge that the industry faces is the rising costs of raw materials, particularly the imported inputs. Price hikes of nearly 8–9% happening every other month on imported raw materials such as Copper clad laminates (CCL), a key material in PCB production, poses a big problem. This in turn adds unpredictability to cost structures further reducing profitability. 

Production and Employment Ambitions 

The government plans to draw in investments of nearly ₹59,350 crore, facilitating production worth around ₹4,56,500 crore aiming to provide 91,600 direct jobs. Apart from this there are also talks about additional indirect employment. By 2026, domestic output from multiple component segments is projected to rise, which will most likely reduce the dependence on imports. 

 

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur. 

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com. 

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations. 

Desktop BannerMobile Banner
Invest Anytime, Anywhere
Play StoreApp Store
Open Free Demat Account Online

By signing up I certify terms, conditions & privacy policy