Electronics Component Manufacturing Scheme
By Ministry of Electronics and Information Technology (MeitY)
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Quick Answer
A scheme by MeitY offering turnover-linked and capital expenditure incentives to companies and LLPs manufacturing identified electronic components and capital goods in India.
- Funding amount
- Varies
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Open to startups registered in India
- Registrations needed
- Private Limited company registration
About this subsidy
The Electronics Component Manufacturing Scheme (ECMS) is an initiative by the Ministry of Electronics and Information Technology (MeitY), Government of India, designed to bolster the domestic manufacturing of electronic components and capital goods. Launched to strengthen India's Electronics System Design and Manufacturing (ESDM) ecosystem, the scheme provides crucial financial incentives to eligible companies and Limited Liability Partnerships (LLPs). These incentives are available for both greenfield (new) and brownfield (expansion of existing) projects within specific target segments.
The core objective of ECMS is to encourage significant investment in the manufacturing sector for electronic components, reducing India's reliance on imports and fostering self-sufficiency. The scheme's benefits are structured to support various aspects of the electronics supply chain, including sub-assemblies, bare components, and the broader capital equipment ecosystem. Implementation is overseen by a dedicated Project Management Agency (PMA) appointed by MeitY, ensuring effective operation and smooth disbursement of incentives. Through detailed industry consultations, the scheme aims to create a robust and competitive manufacturing base for electronics in Bharat, driving economic growth and creating employment opportunities.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Ministry of Electronics and Information Technology (MeitY) is the Government of India ministry for electronics and information technology. Its startup programmes are run through MeitY Startup Hub (MSH), the office founders deal with, which sits at Electronics Niketan, CGO…
Learn moreBenefits & Funding
What You Get
The Electronics Component Manufacturing Scheme provides substantial financial incentives to eligible manufacturers. Benefits include Turnover Linked Incentives for Sub-assemblies and Bare Components (Segments A and B), calculated on net incremental sales over a base year. Hybrid Incentives are offered for Selected Bare Components (Segment C), combining both turnover-linked and Capex incentives. For the Supply Chain Ecosystem and Capital Equipment (Segment D), Capex Incentives are provided, calculated on eligible incremental capital expenditure. Additionally, an Employment Incentive is disbursed upon meeting cumulative incremental employment thresholds. The scheme also includes Additional Incentives for promoting domestic sourcing, such as a 2% incentive for Li-ion Cells if cathode active material (CAM) is sourced or manufactured domestically, and a 1% incentive for Multi-layer PCB if the laminate is domestically sourced or manufactured. These incentives aim to significantly reduce manufacturing costs and enhance competitiveness.
- Disbursement
- Milestone Based
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The application process involves an initial registration and submission through the online portal. Once submitted, the Project Management Agency (PMA) will acknowledge the application within 15 working days. The PMA is responsible for reviewing applications, raising any queries with the applicant, and evaluating compliance with eligibility criteria, investment, sales, and employment thresholds. After thorough verification, the PMA forwards its recommendations to the Governing Council (GC). The GC further reviews these recommendations and sends them for final approval to either the Secretary of MeitY (for incentives up to ₹100 crore) or the Minister of Electronics & IT (for incentives above ₹100 crore). Final approval is granted prior to the commencement of manufacturing to be eligible for incentives. Subsequent to approval, annual incentive claims are submitted through the portal and verified by the PMA for disbursement.
Application Process
- 1
Register Online
Visit the official portal and create an account for your company or LLP.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary objective of the Electronics Component Manufacturing Scheme (ECMS)?
The primary objective of ECMS is to provide financial incentives for the manufacturing of identified electronic components and capital goods in India, thereby strengthening the domestic Electronics System Design and Manufacturing (ESDM) ecosystem and promoting self-reliance.
Who is eligible to apply for this scheme?
Companies registered under the Companies Act (2013 or 1956) or Limited Liability Partnerships (LLPs) registered under the LLP Act, 2008 in India are eligible. Applicants must be investing in the manufacture of target segment goods within India and meet specific investment, sales, and employment thresholds.
What types of incentives are offered under the ECMS?
The scheme offers three main types of incentives: Turnover Linked Incentive (for Sub-assemblies and Bare Components), Capex Incentive (for Supply Chain Ecosystem and Capital Equipment), and Hybrid Incentive (combining both for Selected Bare Components). There are also additional employment-linked and domestic sourcing incentives.
Is there a specific deadline to apply for the ECMS?
The scheme description does not specify a fixed deadline, indicating that applications are accepted on a rolling basis. Eligible entities can apply as long as the scheme is active.
How are the incentives disbursed?
Incentives are generally disbursed annually upon verification by the Project Management Agency (PMA), based on meeting specific performance milestones related to incremental sales, capital expenditure, and employment thresholds, on a first-come, first-served basis.
Are startups and small businesses eligible for the ECMS?
While the scheme is open to eligible companies and LLPs, the specified revenue and investment thresholds (e.g., ₹50 crore ESDM revenue) imply that it is primarily targeted at established manufacturing entities or those with significant investment capabilities, rather than very early-stage startups.
Sources
Data on this page is compiled from official program and provider references.
News
- Government approves 29 more proposals under the Electronics Component Manufacturing Scheme (ECMS)pib.gov.in · 4 weeks ago
- MeitY Approves 31 Additional Proposals Under ECMS, Investing $823 Million, to Boost Electronic Manufacturingelectronicsforyou.biz · 2 months ago
- Epsilon gets ₹145 crore MeitY support for graphite anode material projectauto.economictimes.indiatimes.com · 2 months ago
- MeitY approves ₹7,877cr ECMS projects including Wipro ₹1,033cr increasenewsbytesapp.com · 2 months ago
- India Clears 31 New Electronics Projects Worth ₹7,877 Crore, Says MeitY’s S Krishnanbusinesstoday.in · 2 months ago
- India’s electronics boom gets a big push: MeitY approves 31 projects worth Rs 6,844 croreindiablooms.com · 2 months ago
Source: Google News aggregated
