EconomyGS3

Scheme to strengthen domestic electronics component manufacturing

PIB·2026-09-18· Read original

"Scheme to strengthen domestic electronics component manufacturing"

Prelims Facts

  • •ECMS was notified on 8 April 2025.
  • •ECMS outlay was increased to ₹40,000 crore in the Union Budget.
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Key Terms

ECMS

A government scheme to boost domestic manufacturing of electronic components and related capital goods.

Production Linked Incentive (PLI)

Performance-linked payments to firms based on incremental sales.

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Study Note

BackgroundCore Concept

Background

A sustained electronics ecosystem is central to technology resilience and economic security. India has expanded electronics output rapidly in recent years. Yet a structural import dependence remains for critical components like printed circuit boards and lithium-ion cells. Policy responses have combined demand-side incentives with supply-side capital support to close these gaps.

Policy architecture for electronics manufacturing builds on the National Policy on Electronics (NPE 2019) and multiple incentive schemes that aim to convert assembly-level gains into deeper value addition. The Production Linked Incentive (PLI) framework incentivises firms through performance-linked payments. Complementary programmes such as SPECS and EMC deliver capital grants and infrastructure to lower entry barriers. More recently, a dedicated semiconductor push has added scale to this ecosystem via the Semicon India Programme.

The Topic Explained

The Electronics Component Manufacturing Scheme (ECMS) is designed to move India beyond assembly and towards domestic production of key components. The scheme targets components, sub-assemblies, capital goods and specialised materials where imports remain high. The economic logic is threefold: reduce import vulnerability, increase domestic value addition, and anchor global value-chain investment into local industry.

ECMS combines direct capital support and phased allowances to improve project viability. The scheme was notified on 8 April 2025 with an initial outlay of ₹22,919 crore and was expanded in the Union Budget to ₹40,000 crore. …

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Related PYQs

2026GS1 Prelims

Which one of the following pairs of semiconductor plants in India and their locations is not correctly matched?

ACG Power and Industrial Solutions Pvt. Ltd. in partnership with Renesas Electronics and STARS Microelectronics : Gujarat
BTata Semiconductor Assembly and Test Pvt. Ltd. : Assam
CHCL-Foxconn Joint Venture India Chip Ltd. : Madhya Pradesh
DSicSem Pvt. Ltd. : Odisha
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2021GS1 Prelims

'R2 Code of Practices' constitutes a tool available for promoting the adoption of

Aenvironmentally responsible practices in electronics recycling industry
Becological management of 'Wetlands of International Importance' under the Ramsar Convention
Csustainable practices in the cultivation of agricultural crops in degraded lands
D'Environmental Impact Assessment' in the exploitation of natural resources
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2018GS1 Prelims

When the alarm of your smartphone rings in the morning, you wake up and tap it to stop the alarm which causes your geyser to be switched on automatically. The smart mirror in your bathroom shows the day's weather and also indicates the level of water in your overhead tank. After you take some groceries from your refrigerator for making breakfast, it recognises the shortage of stock in it and places an order for the supply of fresh grocery items. When you step out of your house and lock the door, all lights, fans, geysers and AC machines get switched off automatically. On your way to office, your car warns you about traffic congestion ahead and suggests an alternative route, and if you are late for a meeting, it sends a message to your office accordingly.

In the context of emerging communication technologies, which one of the following terms best applies to the above scenario ?

ABorder Gateway Protocol
BInternet of Things
CInternet Protocol
DVirtual Private Network
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Practice MCQs

Economymedium

Which of the following components were specifically listed as import-dependent targets for domesticisation under ECMS? 1. Printed circuit boards 2. Camera and display modules 3. Connectors 4. Rare-earth magnets Select the correct answer using the code below.

A1 and 2 only
B1, 2 and 3 only
C1, 2, 3 and 4
D2 and 4 only
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Economyeasy

Match the scheme with its feature.

A.ECMS 1. ₹40,000 crore outlay

B.SPECS 2. 25% capex incentive

C.Semicon 2.0 3. ₹1,27,500 crore. Which of the following is correct?

AA-1, B-2, C-3
BA-2, B-1, C-3
CA-3, B-2, C-1
DA-1, B-3, C-2
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Economymedium

Consider the following statements about ECMS: 1. It was notified in April 2025. 2. It has a tenure of six years. 3. Capex Incentive is available for three years. Which of the statements is/are correct? (A) 1 only (B) 1 and 2 only (C) 2 and 3 only (D) 1, 2 and 3

AA
BB
CC
DD
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Economymedium

Assertion (A): ECMS aims to reduce import dependence by incentivising domestic production. Reason (R): PLI provides incentives based on incremental sales performance. Choose the correct option: (A) Both A and R are true, R explains

A.(B) Both true, R does not explain

A.(C) A true, R false. (D) A false, R true.

AA
BB
CC
DD
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Economyeasy

Which policy instrument is primarily designed to move India from assembly to upstream component manufacturing? (A) ECMS (B) PLI for IT Hardware (C) Modified EMC 2.0 (D) Phased Manufacturing Programme

AA
BB
CC
DD
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