Electronics Component Manufacturing Scheme

Source: ET

Context: Union Minister for Electronics & IT launched the guidelines and online portal for the Electronics Component Manufacturing Scheme (ECMS).

• Bengaluru-based Sarvam AI was selected to build India’s first indigenous AI foundational model under the IndiaAI Mission.

About Electronics Component Manufacturing Scheme (ECMS):

• What It Is?

• ECMS is India’s first dedicated Production-Linked Incentive (PLI) scheme focused specifically on boosting electronics components manufacturing. It aims to strengthen India’s role in the global electronics supply chain by enhancing domestic capabilities.

• ECMS is India’s first dedicated Production-Linked Incentive (PLI) scheme focused specifically on boosting electronics components manufacturing.

• It aims to strengthen India’s role in the global electronics supply chain by enhancing domestic capabilities.

• Ministry Involved: Ministry of Electronics and Information Technology (MeitY)

• Budget: ₹22,919 crore outlay.

• Tenure: 6 years (FY 2025-26 to FY 2031-32) with 1-year gestation period.

• Objective

• To attract global and domestic investments in electronics component manufacturing. To increase Domestic Value Addition (DVA) and integrate Indian industries into Global Value Chains (GVCs). To create 91,600+ direct jobs and contribute to India’s $500 billion electronics production target by 2030.

• To attract global and domestic investments in electronics component manufacturing.

• To increase Domestic Value Addition (DVA) and integrate Indian industries into Global Value Chains (GVCs).

• To create 91,600+ direct jobs and contribute to India’s $500 billion electronics production target by 2030.

• Key Features: Incentive Structures: Turnover-linked incentives based on revenue generated. Capex-linked incentives for investment in plants and machinery. Hybrid model combining both turnover and capex incentives. Employment Linkage: Incentives directly tied to job creation. Target Segments: Sub-assemblies (e.g., display and camera modules). Bare components (e.g., multilayer PCBs, Li-ion cells). Capital equipment and supply chain ecosystems. Ease of Doing Business: Simple, transparent guidelines and a first-come, first-served application approach. Focus on Quality: Companies must meet Six Sigma quality standards and establish domestic design teams.

• Incentive Structures: Turnover-linked incentives based on revenue generated. Capex-linked incentives for investment in plants and machinery. Hybrid model combining both turnover and capex incentives.

• Turnover-linked incentives based on revenue generated.

• Capex-linked incentives for investment in plants and machinery.

• Hybrid model combining both turnover and capex incentives.

• Employment Linkage: Incentives directly tied to job creation.

• Target Segments: Sub-assemblies (e.g., display and camera modules). Bare components (e.g., multilayer PCBs, Li-ion cells). Capital equipment and supply chain ecosystems.

• Sub-assemblies (e.g., display and camera modules).

• Bare components (e.g., multilayer PCBs, Li-ion cells).

• Capital equipment and supply chain ecosystems.

• Ease of Doing Business: Simple, transparent guidelines and a first-come, first-served application approach.

• Focus on Quality: Companies must meet Six Sigma quality standards and establish domestic design teams.

About Sarvam AI:

• What It Is?

• Sarvam AI is a Bengaluru-based startup focused on developing indigenous artificial intelligence models for India.

• Aim: To build India’s first indigenous AI foundational model, strengthening national capabilities in AI innovation under the IndiaAI Mission.

• Features:

• Specializes in large language models and transformative AI technologies tailored to Indian languages and societal needs. Will enable sovereign AI capacity, reducing dependency on global tech giants.

• Specializes in large language models and transformative AI technologies tailored to Indian languages and societal needs.

• Will enable sovereign AI capacity, reducing dependency on global tech giants.