Cabinet Approves Rs 229.19 Billion ECM Scheme
29 Mar 2025
2 Min Read
CW Team
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Electronics Component Manufacturing Scheme with a funding of Rs 229.19 billion to strengthen India鈥檚 electronics supply chain and promote self-reliance (Atmanirbhar Bharat) in the sector.
Objective & benefits
The scheme aims to build a robust component ecosystem by attracting global and domestic investments, increasing domestic value addition (DVA), and integrating Indian manufacturers into global value chains (GVCs). It is expected to generate:
鈥� Rs 593.5 billion in investments
鈥� Rs 4,565 billion in production output
鈥� 91,600 direct jobs, along with significant indirect employment opportunities
Key features of the scheme
鈥� Targeted incentives: Custom-designed incentives for different component categories and sub-assemblies to help Indian manufacturers achieve technological capabilities and economies of scale.
鈥� Six-year duration: The scheme will run for six years, with a one-year gestation period.
鈥� Employment-linked incentives: A portion of the incentive is tied to job creation targets.
Industry growth & background
The electronics sector is among the fastest-growing industries globally and is critical to economic and technological advancement. Over the past decade, India鈥檚 electronics manufacturing sector has witnessed remarkable growth:
鈥� Domestic production surged from Rs 1.90 trillion (FY 2014-15) to Rs 9.52 trillion (FY 2023-24), growing at a CAGR of over 17%.
鈥� Electronics exports increased from Rs 0.38 trillion (FY 2014-15) to Rs 2.41 trillion (FY 2023-24), with a CAGR exceeding 20%.
The scheme is set to accelerate India鈥檚 emergence as a global hub for electronics manufacturing, ensuring a stronger, more self-sufficient supply chain.
(PIB)
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Electronics Component Manufacturing Scheme with a funding of Rs 229.19 billion to strengthen India鈥檚 electronics supply chain and promote self-reliance (Atmanirbhar Bharat) in the sector. Objective & benefits The scheme aims to build a robust component ecosystem by attracting global and domestic investments, increasing domestic value addition (DVA), and integrating Indian manufacturers into global value chains (GVCs). It is expected to generate: 鈥� Rs 593.5 billion in investments 鈥� Rs 4,565 billion in production output 鈥� 91,600 direct jobs, along with significant indirect employment opportunities Key features of the scheme 鈥� Targeted incentives: Custom-designed incentives for different component categories and sub-assemblies to help Indian manufacturers achieve technological capabilities and economies of scale. 鈥� Six-year duration: The scheme will run for six years, with a one-year gestation period. 鈥� Employment-linked incentives: A portion of the incentive is tied to job creation targets. Industry growth & background The electronics sector is among the fastest-growing industries globally and is critical to economic and technological advancement. Over the past decade, India鈥檚 electronics manufacturing sector has witnessed remarkable growth: 鈥� Domestic production surged from Rs 1.90 trillion (FY 2014-15) to Rs 9.52 trillion (FY 2023-24), growing at a CAGR of over 17%. 鈥� Electronics exports increased from Rs 0.38 trillion (FY 2014-15) to Rs 2.41 trillion (FY 2023-24), with a CAGR exceeding 20%. The scheme is set to accelerate India鈥檚 emergence as a global hub for electronics manufacturing, ensuring a stronger, more self-sufficient supply chain. (PIB)
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