Source: BS
Context:
The Government of India has approved the first batch of seven projects under ECMS worth ₹5,532 crore, expected to generate ₹36,559 crore in production. The scheme is part of India’s strategy to strengthen domestic electronics manufacturing and reduce dependence on imports.
Key Highlights:
- What is ECMS?
- A flagship initiative under the Ministry of Electronics and Information Technology (MeitY).
- Launched to promote component-level manufacturing of electronics in India.
- Focus: Sub-assemblies, bare components, and capital equipment.
- Integrates domestic firms with Global Value Chains (GVCs) in electronics and semiconductors.
- Objectives:
- Enhance Domestic Value Addition (DVA).
- Reduce import dependence on critical electronic parts.
- Strengthen R&D capabilities in electronics manufacturing.
- Tenure & Incentives:
- Turnover-linked incentives: 6 years (1-year gestation).
- Capital expenditure (Capex) incentives: 5 years.
- Types of incentives: Turnover-linked, Capex-linked, and hybrid to offset manufacturing disadvantages.
- Target Segments:
- PCBs (Printed Circuit Boards)
- Camera Modules
- Copper-Clad Laminates (CCLs)
- Polypropylene Films
- Capital equipment
- Strategic Impact:
- Domestic demand targets:
- Copper-Clad Laminates: 100%
- PCBs: 20%
- Camera Modules: 15%
- Expected to create 91,600 direct jobs.
- Strengthens local R&D and manufacturing ecosystem.
- Domestic demand targets:
- Complementary Ecosystem:
- Works alongside:
- PLI (Production-Linked Incentive) Scheme for Electronics
- India Semiconductor Mission (ISM)
- Aims to build a complete electronics manufacturing chain from devices to materials.
- Works alongside:
