India’s electronics manufacturing gets a boost with MeitY’s ECMS launch

The ECMS adopts a comprehensive approach by supporting the full electronics supply chain—from components to capital equipment—while introducing hybrid incentives tied to job creation, marking a strategic shift from conventional subsidy models

In a strategic move to bolster India’s position as a global electronics manufacturing powerhouse, Union Minister for Electronics and IT, Ashwini Vaishnaw, officially launched the Electronics Component Manufacturing Scheme (ECMS) along with its dedicated online portal. The initiative is designed to deepen India’s capabilities in the electronics value chain and foster a robust, self-reliant ecosystem.

Speaking at the launch event, Minister Vaishnaw outlined India’s progressive roadmap for electronics manufacturing, which began with finished product assembly and has since evolved toward deeper value chain integration—including module and component manufacturing, and now, even materials used in components. He emphasized that with finished goods accounting for up to 85% of the value chain, India has built a solid foundation to scale up advanced manufacturing.

“India’s electronics production has grown nearly five-fold in recent years, and exports have surged over six times, with mobile devices, laptops, and IT hardware showing exceptional momentum,” Vaishnaw said. He cited compound annual growth rates (CAGR) of over 17% in production and over 20% in exports as indicators of the sector’s robust performance.

An integrated scheme fuelling sector-wide innovation

Positioned as a cross-cutting initiative, ECMS is not limited to consumer electronics alone. It is expected to benefit adjacent sectors such as automotive, industrial machinery, and energy. “This is a horizontal scheme that builds the foundation for a complete electronics manufacturing ecosystem in India,” the Minister noted.

In addition to manufacturing, the scheme promotes innovation and quality. Vaishnaw urged companies to form in-house design teams and adhere to Six Sigma quality standards. “Firms that fall short of quality benchmarks will not be able to sustain in the long run. Design and quality are critical to India’s leadership in electronics,” he asserted.

The event also highlighted India’s growing footprint in AI and data-driven technologies. The Minister revealed that over 350 datasets have been added to the national AI repository—AI Kosh—and several AI tools developed by premier institutions like the IITs are ready for rollout.

ECMS: A structured push for innovation and jobs

ECMS stands out for its comprehensive approach, supporting the entire electronics supply chain—from components and subassemblies to capital equipment and manufacturing tools. The scheme introduces hybrid incentives directly linked to employment generation, marking a shift from traditional subsidy models.

The scheme encourages early application through a first-come, first-served model and places a premium on performance. The guidelines have been drafted to prioritize clarity and ease of implementation, reducing bureaucratic hurdles and promoting ease of doing business.

Sarvam AI to lead indigenous AI model development

During the event, Bengaluru-based Sarvam AI was announced as the chosen firm to develop India’s first indigenous AI foundational model, marking a milestone in the country’s push for technological sovereignty.

The launch saw participation from over 200 stakeholders, including government officials, industry leaders, diplomats, and financial institutions. A detailed presentation outlined the formulation process and unique aspects of ECMS, reinforcing the government’s commitment to inclusive, innovation-led growth.