The Ministry of Electronics and Information Technology (MeitY) has approved 31 new manufacturing proposals worth ₹7,877 crore under the fifth tranche of the Electronics Component Manufacturing Scheme (ECMS). The approval, announced by IT Secretary S Krishnan at an event organised by the Electronics Industries Association (Elcina), takes the total number of cleared applications to 106 across 15 states. With cumulative committed investments now standing at ₹69,548 crore, the scheme has comfortably surpassed its original investment target of ₹59,350 crore, signalling strong industry confidence in India’s domestic electronics component ecosystem.
What Is the Electronics Component Manufacturing Scheme?
The Electronics Component Manufacturing Scheme (ECMS) was notified on 8 April 2025 by the Ministry of Electronics and Information Technology with an initial outlay of ₹22,919 crore (approximately USD 2.7 billion). The scheme has a tenure of six years, with an optional one-year gestation period, running from FY 2025-26 to FY 2031-32.
The core objective of ECMS is to build a robust, self-sustaining ecosystem for electronics component manufacturing in India. It aims to attract both domestic and global investment across the electronics value chain, promote higher domestic value addition, and position India as a credible player in global electronics trade. The scheme complements the India Semiconductor Mission (ISM), working alongside it to strengthen the country’s overall semiconductor and electronics ecosystem.
ECMS operates on a first-come, first-serve basis and provides differentiated fiscal incentives on target segment products. These incentives are structured in three forms: turnover-linked incentives, capital expenditure (capex) incentives, and hybrid incentives that combine both. The scheme covers five target segments: sub-assemblies (such as display and camera modules), bare components (including multilayer PCBs and lithium-ion cells), selected bare components, the supply chain ecosystem and capital equipment, and telecom sub-assemblies.
In the Union Budget 2026-27, the government raised the scheme’s outlay to ₹40,000 crore, reflecting a strong policy commitment to expanding domestic manufacturing capacity. The original investment target under ECMS was set at ₹59,350 crore, with a direct employment target of 91,600 jobs and an expected production value of ₹4,56,500 crore over the scheme’s tenure.
Fifth Tranche: 31 Proposals Worth ₹7,877 Crore
The fifth tranche of ECMS approvals covers 31 proposals involving a total investment of ₹7,877 crore. Of this, 31 new applications represent ₹6,844 crore in investment, while the remaining ₹1,033 crore comes from an enhanced investment proposal by Wipro Global for copper-clad laminate manufacturing that had received earlier approval. The approved projects are spread across 10 states and are expected to generate production worth ₹82,243 crore and create close to 10,000 direct jobs.
MeitY Secretary S Krishnan announced the approvals at an event jointly organised by the Electronics Industries Association (Elcina) and the Ministry of Electronics and Information Technology. He noted that the ECMS has emerged as one of the government’s fastest-moving manufacturing programmes, with approval meetings being held almost every week or every 10 days to process the strong flow of industry applications.
The latest approvals take the total number of sanctioned applications from 75 (as of 29 July 2026) to 106. At the previous stage, the 75 approved applications represented ₹61,671 crore in investment, projected production of ₹4.51 lakh crore, and 65,040 direct jobs. The fifth tranche thus represents a significant jump in the scheme’s portfolio within a single month.
Key Companies and Products Covered
The latest approvals span a wide range of electronics components and manufacturing inputs, covering roughly 30 product categories across 15 states. The approved products include capital goods, camera and display modules, anode materials, enclosures, connectors, transducers, rare-earth permanent magnets, acetylene black, optical transceivers, speakers and microphones, relays, hermetic terminals, electrolyte additives, antennas, metallised films for capacitors, coils, filters, capacitors, and metal shielding covers. The tranche also includes an enhanced investment in copper-clad laminates.
Among the major beneficiaries, Wipro secured the highest individual commitment at ₹1,033 crore for copper-clad laminate manufacturing. Jyoti CNC received approval for a ₹1,021 crore investment in capital goods manufacturing. Micromax Precision Moulding was cleared for a ₹565 crore proposal for unit enclosures, while Quantum Magnetics secured ₹400 crore for rare earth permanent magnets. PCBL Chemical (part of the RPSG Group) was approved for ₹329 crore in acetylene black manufacturing, and Acutaas Chemicals received clearance for ₹119 crore in electrolyte additives.
Other notable approvals include Minda Instrument Ltd for display modules (₹270 crore), VVDN Technologies for capital goods (₹100 crore), Syrma SGS for coil manufacturing (₹60 crore), and Centum Electronics for a ₹50 crore allocation. The tranche also includes approvals for GX Group, Centum Electronics, Ennovi Mobility Solutions, Allied Engineering Works, Globe Capacitors, Rosenberger Interconnect, Sensata Technologies, and Britannia RFID Technologies.
Several projects approved under the ECMS have already moved into construction or are progressing towards commercial production. These include lithium-ion cell units at Rewari and Sona, Tata Electronics’ enclosure plant in Hosur, Kaynes’ PCB facility near Chennai, Dixon Technologies’ display and camera module facility in Noida, Motherson’s enclosure plant in Kanchipuram, and Wipro’s laminate plant. Kaynes Technology’s PCB plant is expected to become operational within a month, while Dixon Technologies’ facility is likely to be commissioned within four months.
From 7 to 106: The Tranche-Wise Journey
The ECMS has been rolled out in successive tranches, each clearing a batch of applications as they came in. The scheme received an overwhelming response from industry, with total received applications representing proposed investments surpassing ₹1,15,351 crore, nearly double the original target.
| Tranche | Projects | Approval Date | Investment (₹ Crore) | Projected Production (₹ Crore) | Direct Employment |
|---|---|---|---|---|---|
| First | 7 | 27 October 2025 | 5,532 | 36,559 | 5,100 |
| Second | 17 | 17 November 2025 | 7,172 | 65,111 | 11,808 |
| Third | 22 | 2 January 2026 | 41,863 | 2,58,152 | 33,791 |
| Fourth | 29 | 30 March 2026 | 7,104 | 84,515 | 14,246 |
| Fifth | 31 | August 2026 | 7,877 | 82,243 | ~10,000 |
| Total | 106 | 69,548 | 5,34,101 | ~74,628 |
The third tranche in January 2026 was the largest by value, clearing 22 projects worth ₹41,863 crore, led by Tata Electronics, Motherson Group, and Yuzhan Technology (a Foxconn India arm). That tranche alone accounted for over ₹27,000 crore in mobile phone enclosure investments, signalling the government’s push to localise high-value, scale-intensive components in the smartphone supply chain.
The fourth tranche in March 2026 cleared 29 proposals worth ₹7,104 crore. That round featured the country’s first SMD passive plant for tantalum-based capacitors, the first flexible PCB plant, and the first rare earth permanent magnet facility. It also included six projects focused on high-precision capital equipment.
Applications under categories that remain open will continue to be accepted until July 2027. The government has been processing approvals at a rapid pace, reflecting the strong industry response to the scheme.
India’s Electronics Manufacturing Ambition: The Bigger Picture
The ECMS is a critical piece of India’s broader strategy to transform into a global electronics manufacturing hub. India’s electronics production has grown nearly six-fold over the past decade, surpassing ₹13 lakh crore (approximately USD 155 billion) annually. The government has set an ambitious target of reaching USD 300 billion in domestic electronics production by 2026 and USD 500 billion by 2030-31.
Electronics have emerged as India’s third-largest and fastest-growing export category in FY25, rising from the seventh position in FY22. In the first half of FY26, electronics exports stood at USD 22.2 billion, maintaining strong growth momentum and placing the sector on course to become the country’s second-largest exported item. The gap between electronics and petroleum products (currently the second-largest export) has narrowed dramatically, from USD 73.9 billion at the start of the PLI scheme to approximately USD 16 billion in H1 FY26.
The ECMS works in tandem with the Production-Linked Incentive (PLI) scheme for Large Scale Electronics Manufacturing, which was notified on 1 April 2020 with an outlay of approximately ₹40,995 crore. By March 2026, the PLI scheme had attracted cumulative investments of ₹20,587 crore against a five-year target of ₹7,000 crore, achieved production of ₹11.61 lakh crore, and exports of ₹6.43 lakh crore. The success of the PLI scheme in mobile manufacturing provided the confidence to extend similar support to the component ecosystem through ECMS.
The broader PLI architecture across 14 sectors has attracted actual investments exceeding ₹2.40 lakh crore, generated more than 14.15 lakh direct and indirect jobs, and enabled exports of over ₹15.2 lakh crore as of March 2026. The government is now planning a second phase of the PLI programme that will focus on giving additional support to high-performing sectors while trimming exposure to low-yielding ones.
According to the Economic Survey 2025-26, electronics and mobile manufacturing have emerged as major growth drivers of the Indian economy. The survey noted that India’s electronics sector has undergone a structural transformation, ascending from the seventh-largest export category in FY22 to the third-largest and fastest-growing in FY25. The mobile phone production base grew from 6 crore units in FY15 to 5.45 lakh crore in FY25, and domestic value addition in mobile manufacturing rose to approximately 23% by FY 2023-24.
Key Takeaways
- The Electronics Component Manufacturing Scheme (ECMS) was notified on 8 April 2025 with an initial outlay of ₹22,919 crore, later enhanced to ₹40,000 crore in the Union Budget 2026-27.
- MeitY approved 31 proposals worth ₹7,877 crore under the fifth tranche, bringing the cumulative total to 106 projects across 15 states with committed investments of ₹69,548 crore.
- The cumulative investment under ECMS has exceeded the original target of ₹59,350 crore, while expected production of ₹5,34,101 crore has surpassed the target of ₹4,56,500 crore.
- Electronics have become India’s third-largest and fastest-growing export category in FY25, rising from the seventh position in FY22.
- The government targets USD 500 billion in domestic electronics production by 2030-31, with the PLI scheme having attracted over ₹2.40 lakh crore in actual investments across 14 sectors.
- Applications under ECMS categories that remain open will continue to be accepted until July 2027.
