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Electronics Components Manufacturing Scheme (ECMS)

29 Oct 2025 GS 2 Govt schemes & initiatives
Electronics Components Manufacturing Scheme (ECMS) Click to view full image

Context

  • The Government of India approved seven projects worth ₹5,532 crore under the Electronics Components Manufacturing Scheme (ECMS).

  • Total investment generated: ₹36,559 crore.

  • Employment creation: Over 5,100 direct jobs.

  • Notified on: 8 April 2025

  • Total outlay: ₹22,919 crore (~USD 2.7 billion)

  • Tenure: 6 years + optional 1-year gestation period

  • Nodal Ministry: Ministry of Electronics and Information Technology (MeitY)

Geographic Spread

  • Approved Units:

    • Tamil Nadu – 5 projects

    • Andhra Pradesh – 1 project

    • Madhya Pradesh – 1 project

Products to be Manufactured

  • Multilayer Printed Circuit Boards (PCBs)

  • HDI PCBs (High-Density Interconnect)

  • Camera Modules

  • Copper Clad Laminates

  • Polypropylene Films

Domestic Demand & Export Potential

  • ECMS aims to meet:

    • 20% of domestic PCB demand

    • 15% of domestic camera module sub-assembly demand

    • 100% of domestic copper clad laminate demand

  • 60% of total production from approved plants will be exported.

  • Electronics is India’s 3rd largest export category in 2024–25.

                         
           

Incentives Structure

  • Incentives linked to turnover and capital expenditure (capex).

  • Companies must meet incremental sales and investment targets annually.

  • Failure to meet:

    • Employment target: 1% deduction in incentives.

    • Capex-linked incentive: 5% deduction if capital investment not completed in 3 years.

Eligibility

  • Companies must meet revenue thresholds in either:

    • Electronics System Design and Manufacturing (ESDM), or

    • Pure manufacturing of selected electronic components.

Prelims Practice MCQ

Q. Which of the following products are planned for production under ECMS?

  1. Copper clad laminates

  2. High-density interconnect (HDI) PCBs

  3. Camera modules

  4. Polypropylene films

A. 1 and 3 only
B. 2 and 4 only
C. 1, 2, 3 and 4
D. 1, 3 and 4 only

✅ Answer: C. 1, 2, 3 and 4

Explanation:
All listed products are part of the approved manufacturing list under ECMS projects.

Q. Consider the following statements regarding the Electronics Components Manufacturing Scheme (ECMS):

  1. The ECMS is implemented by the Ministry of Electronics and Information Technology (MeitY).

  2. The scheme aims to meet the entire domestic demand of multilayer printed circuit boards (PCBs) within India by 2028.

  3. ECMS was notified in April 2025 and has a total outlay of ₹22,919 crore.

Which of the above statements is/are correct?

A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3

✅ Answer: B. 1 and 3 only

Explanation:

  • Statement 1 – Correct: ECMS is implemented by MeitY.

  • Statement 2 – Incorrect: ECMS aims to meet 20% of PCB demand domestically, not 100%.

  • Statement 3 – Correct: Scheme notified on April 8, 2025 with ₹22,919 crore outlay.

Q. Under the ECMS, which of the following statements is/are correct?

  1. Projects under ECMS are required to meet annual incremental sales and investment targets.

  2. Failure to meet employment generation targets leads to a 5% deduction in incentives.

  3. Capex-linked incentives are based on capital expenditure incurred within three years.

A. 1 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3

✅ Answer: B. 1 and 3 only

Explanation:

  • Statement 1 – Correct: Companies must meet both incremental sales and investment targets annually.

  • Statement 2 – Incorrect: Failure to meet employment targets results in 1% deduction, not 5%.

  • Statement 3 – Correct: Capex-linked incentives depend on capital expenditure within 3 years.



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