Govt Plans to Extend PLI Scheme for Electronics Components

The Indian government is likely to extend the July 31 deadline for applications for its ₹22,919-crore Electronics Component Manufacturing Scheme (ECMS), as per a senior official on Thursday, “We have received a good response and are mulling extending the deadline for a couple of days,”  the official added. The ECMS, which was inaugurated on May 1, is a key component of India's plan to cut import dependence and create a strong domestic electronics manufacturing ecosystem.

Under the scheme, financial incentives are offered for establishing manufacturing facilities for core components like resistors, capacitors, inductors, micro-electromechanical systems (MEMS), sensors, and semiconductor-grade materials.

Union Electronics and IT Minister Ashwini Vaishnaw had previously expressed that the Ministry had received 70 applications in the first two weeks of the scheme going live, which reflects high industry interest.

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According to the official notice released on March 28, the ECMS is likely to mobilize investments worth ₹59,350 crore and stimulate production worth ₹4,56,500 crore. The scheme is also expected to create up to 91,600 direct employment opportunities, along with widespread indirect employment opportunities.

The ECMS is a part of a larger policy thrust to make India a global electronics manufacturing hub. It will supplement other schemes, such as the Production Linked Incentive (PLI) schemes in electronics and semiconductors.

Industry players have welcomed the government's initiative and are hopeful that the scheme can spur indigenous production of high-value components, reducing India's dependence on imports and enhancing India's value chain in manufacturing electronics.