The Electronics Component Manufacturing Scheme (ECMS) application window deadline has been extended by the Centre until September 30. Applications under ECMS were previously due on July 31, 2025. According to a Ministry of Electronics and Information Technology (MeitY) notification, Ashwini Vaishnaw, the minister of IT, approved the adjustment.
INR 8,000 Cr in Bids Received, INR 59,350 Cr Investment Targeted
Notably, under the ECMS plan, the Centre has already received bids totalling between INR 7,500 Cr and INR 8,000 Cr. The ministry is expected to sanction projects under the INR 22,919 Cr program by August or September, according to a number of earlier reports.
Scheme Aims to Create 91,600 Jobs & Scale Output
This plan to concentrate on non-semiconductor electronics components was accepted by the union cabinet on March 28. It seeks to draw in INR 59,350 Cr in investment, which will lead to INR 4,56,500 Cr in output and the creation of 91,600 new direct jobs in addition to numerous indirect jobs. With a one-year gestation period, the system has a six-year duration. A portion of the incentive’s payout is also correlated with meeting employment goals.
Rare Earth Shortages & Global Trade Tensions Hit Industry
Cross-border trade disputes are making it challenging for Indian manufacturers to advance smoothly, even as the government promotes the “Made in India” slogan to boost domestic production. A number of ECMS companies raised concerns earlier this month about missing first-year incentive targets because they lacked the necessary resources.
This follows previous Chinese export restrictions on several rare earth elements. To put things in perspective, the incentive payout for the first year under ECMS is contingent upon a number of goals, including employment creation, capital spending, and output value.
However, Indian manufacturing would also be hit hard, as China has banned the supply of seven essential rare earth elements in retaliation for Donald Trump’s announcement of a 34% tariff on Chinese imports into the US. India uses rare earth metals to make consumer gadgets, conventional cars, and electric vehicles, among other things.
India’s Electronics Manufacturing Surge: FY24 Highlights
In terms of the industry’s progress thus far, India manufactured electronics products valued at INR 9.52 Lakh Cr in FY24 compared to INR 1.90 Lakh Cr in FY15. With 99% of smartphones being produced domestically, the nation has also seen a significant decrease in its reliance on imports, according to the Economic Survey 2024–25.
Policy Support: SEZ Norms Relaxed to Boost Local Manufacturing
Even in her 2025–2026 budget statement, Finance Minister Nirmala Sitharaman stated that the government wants to provide the local electronics equipment industry with a much-needed boost. Since then, the industry has seen a number of advancements. The Centre changed the regulations governing special economic zones (SEZs) last month to give manufacturers of semiconductors and electronic components more latitude.
The minimum amount of land needed to establish SEZ units has been lowered from 50 hectares to 10 hectares under this new notification. Smartwatches, earbuds, display module sub-assemblies, Li-ion battery cells, camera module sub-assemblies, battery sub-assemblies, and various other module sub-assemblies, as well as printed circuit boards (PCBs) and hardware components for mobile and information technology, will all be covered by the relaxation.
Tata Electronics and German engineering behemoth Robert Bosch GmbH teamed together earlier this month to concentrate on semiconductor chip manufacturing and packaging at Tata Electronics’ planned sites in Gujarat and Assam.
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