Why in News?
Recently, the Ministry of Electronics and Information Technology (MeitY) approved 31 more applications under the Electronics Components Manufacturing Scheme (ECMS).
About Electronics Components Manufacturing Scheme
The Electronics Components Manufacturing Scheme (ECMS) was launched in 2025 by the Ministry of Electronics and Information Technology (MeitY).
The scheme aims to develop a robust domestic electronic component manufacturing ecosystem by attracting global and domestic investments across the value chain and integrating India’s electronics industry with Global Value Chains (GVCs).
Incentive Structure
The ECMS provides three types of incentive structures.
Turnover-linked incentive is based on the revenue generated by the eligible manufacturing activity.
Capex-linked incentive is linked to investments made in plant and machinery.
Hybrid incentive combines elements of both the turnover-linked and capex-linked models.
Employment Generation
Employment generation is a mandatory requirement for all applicants under the scheme. This applies to both component manufacturers and capital equipment producers.
Tenure
The scheme has a six-year tenure, including a one-year gestation period for the turnover-linked incentive.
The capital expenditure-linked incentive is available for a period of five years.
Focus of the Scheme
The ECMS focuses particularly on passive electronic components. These include resistors, capacitors, speakers, microphones, special ceramics, relays, switches and connectors.
In contrast, active electronic components fall under the purview of the India Semiconductor Mission (ISM).
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In every Lecture. Director Sir will provide conceptual understanding with around 800 Mindmaps.
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