Back to Schemes
Science, IT & Communications; Business & Entrepreneurship

Electronics Component Manufacturing Scheme

The scheme aims to provide financial incentives for manufacturing electronic components in Bharat. Through this scheme, turnover and capital expenditure-linked incentives are provided to companies and Limited Liability Partnerships.

Authority

Central

Region

Central Government

Status

Verified 2026

Updated

March 2026

What you get

Nature of Incentives by Target Segment: | The scheme offers three types of incentives depending on the target segment: | Sl. No.Target SegmentNature of IncentiveASub-Assemblies1Display module sub-assemblyTurnover Linked Incentive2Camera module sub-assemblyTurnover Linked IncentiveBBare Components3Non-Surface mount devices (non-SMD) passive components for electronic applicationsTurnover Linked Incentive4Electro-mechanicals for electronic applicationsTurnover Linked Incentive5Multi-layer Printed Circuit Board (PCB)Turnover Linked Incentive6Li-ion Cells for digital applications (excluding storage and mobility)Turnover Linked Incentive7Enclosures for Mobile, IT Hardware products and related devicesTurnover Linked IncentiveCSelected Bare Components8High-density interconnect (HDI)/ Modified semiadditive process (MSAP)/ Flexible PCBHybrid Incentive9SMD passive componentsHybrid IncentiveDSupply Chain Ecosystem and Capital Equipment10Parts/components used in the manufacturing of subassembly (A) and bare components (B) & (C)Capex incentive11Capital goods used in electronics manufacturing, including their sub-assemblies and componentsCapex incentive | - Turnover Linked Incentive: Applicable to Sub-assemblies (Segment A) and Bare Components (Segment B). The incentive is calculated on net incremental sales over the base year, multiplied by the applicable incentive rate.1. Hybrid Incentive: Applicable to Selected Bare Components (Segment C), comprising both turnover-linked incentive and Capex incentive.1. Capex Incentive: Applicable to Supply Chain Ecosystem and Capital Equipment (Segment D). The incentive is calculated on eligible incremental capital expenditure, multiplied by the applicable incentive rate.1. Employment Incentive: A portion of the incentive (1% for turnover-linked or 5% for Capex) is specifically disbursed upon meeting cumulative incremental employment threshold criteria.1. Additional Incentive: An additional 2% incentive on incremental sales is provided for Li-ion Cells if cathode active material (CAM) is sourced or manufactured domestically. | - An additional 1% incentive on incremental sales is provided for Multi-layer PCB if the laminate is sourced or manufactured domestically. | Incentive Rates: | Sl.No.Target SegmentESDM Revenue (₹)Manufacturing Revenue (₹)1Display module sub-assembly250 crore750 crore2Camera module sub-assembly250 crore750 crore3Non-SMD passive components50 crore150 crore4Electro-mechanicals50 crore150 crore5Multi-layer PCB50 crore150 crore6Li-ion Cells for digital applications (excluding storage and mobility)250 crore750 crore7Enclosures for Mobile, IT Hardware products and related devices250 crore750 crore8HDI/MSAP/Flexible PCB500 crore1500 crore9SMD passive components250 crore750 crore(Incentive rates listed year-wise across 6 years of the incentive period)

Who can apply

The applicant should be a company registered in Bharat under the Companies Act, 2013 (or the erstwhile Companies Act, 1956) or a Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008.; The applicant should be investing in the manufacture of target segment goods in Bharat.; The applicant shall meet the threshold criteria regarding investment, sales, and employment as per [Annexure 3](https://www.meity.gov.in/static/uploads/2025/04/30e8672a53f05b9f90d86d16901b23d2.pdf) of the guidelines.1. The applicant shall meet the minimum consolidated global Electronics System Design and Manufacturing (ESDM) revenue or manufacturing revenue for the Financial Year.; The applicant shall submit separate applications for each target segment product.; The applicant shall maintain a net worth greater than or equal to 50% of the proposed investment for target segment D.; The applicant shall ensure that Foreign Direct Investment (FDI) is in compliance with the FDI Policy Circular 2020.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What is the objective of the scheme?

The main objective of the Electronics Component Manufacturing Scheme (ECMS) is to make India self-reliant (Atmanirbhar) in the electronics supply chain by building a strong domestic component manufacturing ecosystem.

Who can apply for ECMS?

Only a Company or LLP investing in the manufacturing of target segment electronics products is eligible. Both greenfield and brownfield projects are allowed.

What is the official portal to apply?

Applications are submitted online at https://ecms.meity.gov.in/register.

What are the Target Segments under ECMS?

There are 5 segments — A (Sub-assemblies), B (Bare Components), C (Selected Bare Components), D (Supply Chain & Capital Equipment), and E (Telecom Sub-assembly)

What incentives are available?

Three types — Turnover-linked, Capex-linked, and Hybrid (combination of both)

What is the total budget of the scheme?

The scheme has a total budgeted outlay of ₹22,919 crores

How long does the scheme run?

The scheme runs for 6 years from FY 2025–26 with a 1-year gestation period for Segments A, B & C

Can one company submit multiple applications?

Yes, but only one application per product is allowed. Separate applications are required for each product under the target segment

Is the application fee refundable?

No, the application fee is non-refundable.

What is the minimum investment required?

It varies by product — minimum ₹10 Cr for Segment D (Supply Chain & Capital Equipment) and up to ₹1,000 Cr for HDI/MSAP/Flexible PCB

How long does PMA take to acknowledge the application?

PMA issues acknowledgement within 15 working days of application submission.

Who gives the final approval?

Secretary MeitY approves incentives up to ₹100 Cr and Minister of Electronics & IT approves incentives above ₹100 Cr.

How are incentives disbursed?

Incentives are disbursed on a first-come, first-served basis after submission of certified annual claims, capped at 50% of the eligible incremental investment.