Electronics Component Manufacturing Scheme (ECMS) — ₹22,919 Crore for Passive Components, Sub-Assemblies, Bare Components and Capital Equipment: Turnover-Linked, Capex-Linked (25%) and Hybrid Incentives, Employment Condition, Investment and Turnover Thresholds, Documents and the Annual Claim

₹22,919 crore
Scheme outlay, notified 8 April 2025; applications on ecms.meity.gov.in from 1 May 2025
25%
Capex-linked incentive on eligible capital expenditure for capital equipment and selected segments
Turnover-linked
Incentives on incremental sales for sub-assemblies and bare components over the scheme period
91,600 jobs
Direct employment target; employment generation is a mandatory condition for every applicant
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Video Explanation & Insights

PLI: 25% subsidy on electronic components — Electronics Component Manufacturing Scheme

4 videos on this topic

Overview

What ECMS is — and why components

India's electronics production crossed ₹11 lakh crore on the strength of assembly schemes for mobile phones and IT hardware, while most components — displays, camera modules, PCBs, cells, connectors, passives — were still imported. The Electronics Component Manufacturing Scheme, approved by the Cabinet in March 2025 and notified on 8 April 2025, targets that gap with ₹22,919 crore over its tenure: incentives to make components and sub-assemblies in India, deepen value addition, integrate Indian manufacturers into global value chains and, as the video stresses, generate employment — the scheme makes job creation mandatory rather than optional. Targets stated at notification: ₹59,350 crore of investment, ₹4,56,500 crore of production and 91,600 direct jobs; by December 2025 the government reported investment commitments above ₹1.15 lakh crore and approvals for dozens of applicants across the segments.

SegmentIncentive typeExamples
Sub-assembliesTurnover-linked on incremental salesDisplay modules, camera modules
Bare componentsTurnover-linkedNon-SMD passive components, electro-mechanical components (connectors, relays), multi-layer PCBs, lithium-ion cells for digital/energy storage, enclosures for mobiles, IT hardware and related devices
Selected bare componentsHybrid — turnover-linked plus capex-linkedSMD passive components, HDI/MSAP/flexible PCBs, electronic-grade materials, sensors
Supply chain and capital equipmentCapex-linked — 25% of eligible capital expenditureCapital equipment and sub-assemblies of equipment used in electronics manufacturing
Eligibility

Who can apply — thresholds and conditions

  • Entities: companies (including subsidiaries of foreign companies), LLPs and other legal entities manufacturing in India; greenfield and brownfield projects both qualify; each segment fixes its own minimum cumulative investment and minimum incremental turnover thresholds — the video's chart cites, for instance, ₹20 crore investment and ₹40 crore turnover for passive-component lines and far higher figures for semiconductor-adjacent segments; check the guideline table for your target segment.
  • Employment: a minimum direct-employment commitment linked to the investment, verified through PF/ESI data — mandatory for every applicant and for every claim.
  • Financial standing: positive net worth, audited financials for three years (or the group's), no NPA, tax and GST compliance; technical capability and a credible supply-chain plan.
  • Investment counted: plant, machinery, equipment, R&D, transfer of technology and related civil works within the scheme's definitions; land and administrative buildings excluded; second-hand equipment excluded.
  • One application per segment per entity; group companies may apply for different segments as the guidelines allow.
Process

Application, approval and claims

  1. 1Company profile: incorporation documents (MoA/AoA or LLP/partnership deed), PAN, TAN, GST, promoters' profiles, three years' audited financials, CA-certified net-worth and turnover certificates, bank details.
  2. 2Project profile: manufacturing plant details, segment and products, investment plan with phasing, employment plan, projections, feasibility report and the declaration/consent to the scheme's conditions.
  3. 3Apply on ecms.meity.gov.in (window opened 1 May 2025 — the guidelines allow application windows over the scheme period); the Project Management Agency scrutinises, seeks clarifications by mail or call, and the competent committee approves; an approval letter sets the thresholds and timelines.
  4. 4Implementation and annual claims: file every year with CA-certified statements of investment, production, sales (reconciled to GST returns) and employment; the incentive is disbursed to the company's bank account after verification. Capex incentives are claimed against certified capital expenditure; turnover incentives against incremental sales.
  5. 5Continuity: the scheme expects sustained operation and employment across the period — units that stop after two or three years forfeit further incentives and may face recovery.
ECMS stacks with state electronics policies (capital subsidies, SGST reimbursement, land) and with the customs-duty concessions on inputs; it does not stack with another central PLI on the same product.
FAQs

ECMS: questions we are asked

It is a sister scheme — turnover-linked like PLI for some segments, capex-linked (25%) for capital equipment and hybrid for others, with employment mandatory.

Only if it meets the segment's minimum investment and turnover — the lowest thresholds are in the tens of crores; smaller units use state MSME policies and CLCS-type schemes.

The scheme is designed for companies and LLPs; the guideline's 'other entities' language should be read with the segment's investment scale in mind.

A minimum number of direct jobs linked to investment, verified through statutory data every claim year.

The portal opened on 1 May 2025; check ecms.meity.gov.in for the current window and segment availability.

Yes — segment eligibility, incentive modelling, portal application, net-worth/turnover certificates and annual CA-certified claims.