The Union Budget 2026 has increased the allocation for the Electronics Components Manufacturing Scheme (ECMS) to ₹40,000 crore, up from ₹22,919 crore, marking a 75 percent increase.
The revised allocation follows significantly higher industry participation than originally projected. When the scheme was launched in April 2025, the government had estimated that it would receive between 50 and 55 applications. Instead, ECMS received 149 applications within nine months of its launch, nearly three times the expected number. The increase in the scheme’s financial outlay reflects the higher volume of eligible projects seeking manufacturing support.
Production and Investment Targets Revised
Along with the expanded allocation, production and investment targets under ECMS have been substantially revised. The original projections under the scheme estimated cumulative production of ₹4.5 lakh crore by the end of the programme period. Under the revised targets announced in Budget 2026, expected production has been raised to ₹10.34 lakh crore.
So far, 46 projects have been approved under the scheme, with total committed investments of ₹54,567 crore. These approvals represent manufacturing projects across multiple electronics component categories. The scheme is also expected to generate 1.41 lakh direct jobs. Employment creation is projected mainly in manufacturing clusters located in Tamil Nadu, Karnataka, Telangana and Gujarat.
Manufacturing Segments Covered Under ECMS
ECMS covers five electronics component segments. These include display modules, camera modules, printed circuit boards, lithium-ion batteries and electromechanical components.
The scheme is designed to support the domestic manufacturing of intermediate electronic components used in downstream industries such as electronics assembly, consumer electronics, telecommunications equipment and automotive manufacturing.
By focusing on components rather than only finished products, ECMS aims to expand domestic capacity in critical parts of the electronics supply chain.
Domestic Value Chain Development
The supported component categories form core inputs for products such as televisions, mobile phones, consumer appliances and automotive electronics.
The availability of domestic component manufacturing is expected to support electronics and equipment manufacturers operating in India by providing locally produced inputs. According to the scheme framework, domestically manufactured components under ECMS are expected to offer cost advantages of 15 to 30 percent compared to imported alternatives, depending on product category and scale of production.
The component ecosystem created through the scheme is intended to reduce reliance on imported electronic parts and strengthen domestic supply chains for manufacturing operations in India.
Uptake in a Changing Global Supply Environment
The scale of industry response to ECMS comes amid ongoing global supply chain disruptions affecting the electronics and semiconductor sectors. Companies globally are reassessing sourcing strategies following recent shortages and trade-related disruptions.
The volume of applications received under ECMS within the first nine months indicates strong private-sector interest in expanding electronics component manufacturing capacity in India under the scheme’s incentive framework.
The Outlook
Budget 2026’s expanded allocation to ECMS reflects a sharp increase in industry participation compared with original estimates, alongside revised targets for production, investment and employment. With 149 applications received, 46 projects already approved and manufacturing coverage across five component segments, the scheme is positioned as a central instrument for scaling India’s domestic electronics component manufacturing base.
