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A PIB Backgrounder sets out the status of the Electronics Components Manufacturing Scheme, notified on 8 April 2025 to move India from electronics assembly to component manufacturing.
The Union Budget 2026-27 raised the scheme's outlay from Rs 22,919 crore to Rs 40,000 crore.
As of August 2026, 106 projects covering 30 product categories across 15 States have been approved, with investment of Rs 69,548 crore and production already running at 38 plants.
India is targeting a USD 500 billion domestic electronics manufacturing ecosystem and USD 150 billion in electronics exports by 2030.
Deepen domestic value addition by supporting manufacture of components, sub-assemblies, supply-chain products and the capital goods needed to make them.
Key: Notified 8 April 2025; six-year tenure; capex incentive for five years; outlay raised to Rs 40,000 crore in Budget 2026-27.
Position India as a global hub for Electronics System Design and Manufacturing (ESDM).
Key: The overarching framework under which the later component and semiconductor schemes sit.
Scale domestic electronics and mobile phone manufacturing.
Key: Performance-linked incentives of 4 to 6 per cent on incremental sales for eligible target segments.
Fund the capital cost of component manufacturing and the infrastructure around it.
Key: SPECS gave a 25 per cent capital-expenditure incentive for electronic components, semiconductor and display fabrication, ATMP units, specialised sub-assemblies and capital goods; EMC 2.0 funded common facilities and plug-and-play capacity. The earlier EMC Scheme offered up to 50 per cent of project cost, capped at Rs 50 crore for every 100 acres in greenfield projects.
Deepen value addition in mobile phones through tariffs, and supply risk capital to ESDM start-ups.
Key: PMP uses a structured, tariff-based approach for cellular phones and sub-assemblies; EDF is a Fund of Funds investing in venture 'Daughter Funds'.
A printed circuit board mechanically supports and electrically connects a device's components, and PCB assembly is where chips, connectors and modules are mounted onto it. Assembling imported components adds little value at home; making the components raises domestic value addition and cuts import dependence.
GS Paper 3 > Indian Economy > Industrial Policy, Manufacturing and Growth
General Awareness > Government Schemes
Electronics System Design and Manufacturing - the sector framework set by the National Policy on Electronics 2019.
The share of a product's value created within the country rather than imported.
A fund that invests in other funds rather than directly in firms - the structure used by the Electronics Development Fund.