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Finance Minister Nirmala Sitharaman on Sunday announced the Centre will nearly double the allocation under the electronic component manufacturing scheme (ECMS) to Rs.40,000 crores in the budget 2026. The scheme was approved with an initial allocation of Rs. 22,919 crores last year, and opened to applications on May 1, last year.
Serving as the government's flagship scheme to build the electronic component manufacturing ecosystem from scratch, ECMS has so far approved investments in multilayer printed circuit boards (PCBs), enclosures, capacitors, optical transceivers, camera module sub assemblies, copper clad laminates, and other electronic components.
Pegged at Rs. 54,567 crore, the 46 investments target production worth 3.67 lakh crore and are projected to create nearly 51,000 direct jobs. Currently, the electronics sector employs 25 lakh people in India, of which 14-15 lakh work in mobile phone manufacturing, Vaishnaw said.
The Centre has received a total of 249 applications with proposed investments surpassing Rs 1,15,351 crore under ECMS, buoyed by interest from smaller manufacturers, the MeitY had announced in early-October, two days after the application deadline for ECMS closed on September 30. The response was nearly double the targeted Rs.59,350 crore under the scheme.
The scheme is now set to yield electronics components of about Rs. 10,34,700 Crores in the next six years, 2.2-times the targeted Rs. 4,56,000 crore worth of production.
Investments by subsidiaries of Tata Electronics, Motherson, Wipro, BPL, and Hindalco, as well as domestic contract manufacturers such as Dixon, and Deki electronics have been approved so far.
Semiconductor mission
Addressing India's need to expand semiconductor production, Sitharaman also announced the rollout of the second phase of the India Semiconductor Mission.
The government has nearly exhausted the Rs. 76,000 funding available to it under the ISM, officials had said in August, last year. Of the Rs 65,000 crore reserved for chip production, Rs 62,900 crore has been allocated to 10 proposals till now.
With ten approved projects covering semiconductor fabrication units (fabs), outsourced semiconductor assembly and testing facilities (OSAT), and compound semiconductor units, amounting to a total investment commitment of about Rs.1.6 lakh crore in six Indian states.
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Pegged at Rs. 54,567 crore, the 46 investments target production worth 3.67 lakh crore and are projected to create nearly 51,000 direct jobs. Currently, the electronics sector employs 25 lakh people in India, of which 14-15 lakh work in mobile phone manufacturing, Vaishnaw said.
The Centre has received a total of 249 applications with proposed investments surpassing Rs 1,15,351 crore under ECMS, buoyed by interest from smaller manufacturers, the MeitY had announced in early-October, two days after the application deadline for ECMS closed on September 30. The response was nearly double the targeted Rs.59,350 crore under the scheme.
The scheme is now set to yield electronics components of about Rs. 10,34,700 Crores in the next six years, 2.2-times the targeted Rs. 4,56,000 crore worth of production.
Investments by subsidiaries of Tata Electronics, Motherson, Wipro, BPL, and Hindalco, as well as domestic contract manufacturers such as Dixon, and Deki electronics have been approved so far.
Semiconductor mission
Addressing India's need to expand semiconductor production, Sitharaman also announced the rollout of the second phase of the India Semiconductor Mission.
The government has nearly exhausted the Rs. 76,000 funding available to it under the ISM, officials had said in August, last year. Of the Rs 65,000 crore reserved for chip production, Rs 62,900 crore has been allocated to 10 proposals till now.
With ten approved projects covering semiconductor fabrication units (fabs), outsourced semiconductor assembly and testing facilities (OSAT), and compound semiconductor units, amounting to a total investment commitment of about Rs.1.6 lakh crore in six Indian states.