On October 2, 2025, the Ministry of Electronics and Information Technology announced that more incentive applications had been submitted to the Electronics Component Manufacturing Scheme (ECMS) than the Union Cabinet had set as a goal.
While the aim is just INR 59,350 crore, the IT Ministry has received applications with investment guarantees of INR 1,15,351 crore as of September 30, the deadline for applying for incentives for the majority of items under the ECMS’s purview.
ECM was Launched to Boost Semiconductor Fabrication in India
With an INR 22,919 crore investment, the ECMS was introduced in April as an addition to the India Semiconductor Mission. Qualified candidates would get incentive payouts connected to both employment and output.
The programme was introduced to broaden the value chain of electronics manufacturing in India by promoting the expansion of components other than semiconductor fabrication and completed goods in the country.
IT Minister Ashwini Vaishnaw informed reporters that during the scheme’s six-year duration, we have received output estimates of more than INR 10,34,000 crore, against a production target of INR 4,56,500 crore. We have set a target of 91,600 people for employment; however, the anticipated number of employees is 1.5 times higher, at 141,000 people.
What will be the Government’s Next Step Now?
IT Secretary S. Krishnan added that the government will distribute funds in a “first come, first served” manner, with incentive payouts going to approved companies that can grow their businesses and get products onto the market more quickly. The delay is due to the interest in the scheme, which has received 249 applications in total for manufacturing everything from printed circuit boards (PCBs) to so-called “sub-assemblies” in electronic goods.
For these candidates, scrutiny has begun, and the Ministry will expedite the approval procedure. Vaishnaw stated that some companies had applied for incentives for producing many types of components, which he said the government encouraged, but he declined to name any specific companies that have applied for incentives under this system (or their countries of origin). With 87 applications and 43 applications, respectively, “multi-layer PCBs” and “electro-mechanicals” attracted the most interest. According to the Ministry, “one unnamed company committed around INR 22,000 crore.”
In reference to the forthcoming second phase of the India Semiconductor Mission, which the government stated is being formulated with an “attractive response from industry”, Vaishnaw stated, “We’re planning to encourage materials also.” In recent months, the government has attempted to broaden the scope of its SOPs to include other value chain segments, such as capital support, semiconductor packaging facilities, and phone assembly units, in the electronics manufacturing industry.
Due to the time it takes for this specific sector of the business to establish itself, the government is extending the application period for capital goods, or the heavy machinery needed in manufacturing facilities, until April 2027, even though it has finished for almost all other products.
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•Against a target of INR 59,350 crore, •Scheme launched in April 2025 with a •Expected output during the scheme’s •Employment projection: 1.41 lakh |


