Small Businesses Dominate India’s Push for Electronics Self-Reliance
New Delhi– India’s ₹22,805 crore Electronics Component Manufacturing Scheme (ECMS) has received 70 applications within just 15 days of launch, with 80% coming from small and medium enterprises (SMEs), Union Minister Ashwini Vaishnaw announced today.
Key Highlights:
✔ 70 applications received since May 1 launch
✔ 80% from MSMEs – strong small business participation
✔ Big players like Tata Electronics, Dixon, Foxconn also applied
✔ Scheme aims to reduce $248 billion expected component deficit by 2030
Funding Breakdown:
| Category | Focus Area | Allocation (₹Cr) |
|---|---|---|
| A | Display/camera modules | Major share of ₹21,093 Cr |
| B | PCBs, lithium-ion cells | Included in above |
| C | Flexible PCBs, SMD components | Included in above |
| D | Capital goods, sub-components | ₹1,712 Cr |
Why This Matters:
- Current Scenario: India imports 70%+ electronic components
- 2030 Projection: 248billioncomponentshortagefor248billioncomponentshortagefor500B electronics production
- MSME Opportunity: Scheme creates pathway for small firms to enter global supply chains
Minister Vaishnaw noted:
“The overwhelming MSME response shows India’s small manufacturers are ready to become component champions.”
Industry Perspective:
Elcina (Electronics Industry Association) warns that without domestic component production:
- Import dependence will grow
- Electronics exports remain constrained
- Job creation potential untapped
What’s Next?
- May 1-July 31: Application window for Categories A-C
- 2-year window: For Category D (capital goods)
- Selection process: Expected to prioritize scalable, high-impact projects
This scheme complements existing PLI incentives, creating full-stack electronics manufacturing from components to finished goods.
