Centre receives 150 proposals worth 19,000 crore under ECMS

The Centre has received more than 150 applications with proposed investments surpassing Rs 19,000 crore under the Electronics Component Manufacturing Scheme (ECMS), buoyed by interest from smaller manufacturers, said people with knowledge of the development.

“There has been a wave of interest from small manufacturers, especially for bare components such as multi-layer printed circuit boards (PCBs),” said one of the persons, who did not wish to be identified.

Many applicants belong to the target product segment of electro-mechanicals for electronic applications segment, for which the minimum revenue stipulated for applicants under the scheme is Rs 50 crore.


The initial three-month application window for the Rs 22,919 crore scheme opened on May 1. However, it was extended by two months at July-end after smaller players asked for more time to be able to establish channels for sourcing materials, setting up joint ventures and securing technology. Officials have indicated that the scheme will not be extended further beyond the September 30 deadline.

The ECMS aims to establish a strong domestic manufacturing ecosystem for a range of components used in a range of sectors. These include bare components such as PCB and Lithium-ion cells for digital applications, passive components such as resistors, capacitors and inductors, as well as display and camera module sub-assemblies.

“There is a lot of interest from PCB manufacturers. More than 20 IPCA member companies have applied under ECMS," said Indian Printed Circuit Association (IPCA) secretary KS Babu.

However, rising prices of imported copper clad laminates (CCL) remain a challenge, he said.

Providing the insulating substrate and conductive copper layers, these form the basic structure for electronic circuits.

“Mostly imported from China, its price is now rising by 8-9% every alternate month. Suppliers are increasing prices by taking advantage of the tariff-led uncertainty, and trade tensions between the US and China,” Babu added.

Manufacturers, however, hope that increasing domestic production from 2026 onwards would address shortages. Wipro Infrastructure Engineering recently launched a Rs 500 crore facility in Karnataka to manufacture CCLs through a new division, Wipro Electronic Materials.

Rare earth headache continues

While rare earth magnet curbs by China pose a major challenge at the moment, the government has assured support, said the people cited earlier.

In August, China had promised to lift curbs on the export of rare earth magnets and critical minerals, tunnel boring machines and fertiliser to India after a meeting between external affairs minister S Jaishankar and his Chinese counterpart Wang Yi. However, the situation on ground is yet to change, with supply of rare earth magnets remaining tight, according to industry executives.

“The Ministry of External Affairs is in touch with China. A solution will be found soon. In any case, manufacturers have the option of importing components that use rare earth, or seek alternate sources,” said an official.

The government is aiming at production worth Rs 4,56,500 crore and direct employment for 91,600 persons under the ECMS.