Component PLI: A Milestone for India's Electronics Manufacturing Sector
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Synopsis
The Electronics Components Manufacturing Scheme (ECMS) is a pivotal initiative aimed at enhancing India's electronics manufacturing sector by attracting substantial investments and boosting domestic production, thereby creating thousands of jobs.
Key Takeaways
- ECMS budget: ₹ 22,919 crore
- Investment target: ₹ 59,350 crore
- Projected production value: ₹ 4,56,500 crore
- Job creation: 91,600 new jobs
- Application start date: May 1
New Delhi, April 26 (NationPress) Industry leaders expressed on Saturday that the ₹ 22,919 crore Electronics Components Manufacturing Scheme (ECMS) represents a crucial milestone in enhancing India's electronics manufacturing landscape and boosting domestic value addition, in tandem with semiconductor policy initiatives.
Following the release of the ECMS scheme guidelines and portal by Union Minister Ashwini Vaishnaw in the national capital, Ashok Chandak, President of SEMI India and IESA, praised the IT Ministry for their efforts, stating they actively promote India's policies on both domestic and international platforms to attract investments and nurture the ecosystem with an eye on global markets.
“At the upcoming SEMICON India event in September, we anticipate numerous companies and members showcasing advancements in this area,” Chandak noted.
The ECMS, with a comprehensive budget allocation of ₹ 22,919 crore, is designed to attract investments totaling ₹ 59,350 crore, facilitating the production of products valued at ₹ 4,56,500 crore and creating approximately 91,600 direct jobs, thereby reinforcing India's status as a global hub for electronics manufacturing.
Pankaj Mohindroo, Chairman of ICEA, expressed gratitude towards the government for incorporating their key recommendations, including the scheme's structure, a hybrid support system combining turnover and capex incentives, and notably, support for capital equipment.
“The mobile phone industry has established a robust production base of nearly $62 billion, and with the ECMS, this momentum will permeate deeply into the components and sub-assembly ecosystem,” he added in a statement.
As we progress, integration with Global Value Chains (GVCs) will be vital for achieving scale, enhancing competitiveness, and fostering Indian champions.
“We are optimistic that this scheme will yield substantial success, and ICEA, in collaboration with the government and industry, will drive meaningful outcomes to cultivate a strong and resilient electronics manufacturing ecosystem in India,” Mohindroo stated.
Applications for the ECMS scheme will commence on May 1 for an initial duration of three months and may be reopened based on the industry's response.
