The Electronics Component Manufacturing Scheme (ECMS) was notified on April 8,2025, vide Gazette Notification No. CG-DL-E-08042025-262341.
The scheme aims to develop a robust component ecosystem by attracting large investments (global/domestic) in electronics component manufacturing ecosystem, by developing capacity and capabilities, and integrating Indian companies with Global Value Chains (GVCs).
The modified scheme was notified on 4th October 2022 by MeitY. The aim of the scheme is to attract large investments for setting up semiconductor wafer fabrication facilities in the country to strengthen the electronics manufacturing ecosystem and help establish a trusted value chain.
The Scheme shall extend a fiscal support of 50% of the project cost for setting up of Semiconductor Fabs in India. The application should meet the threshold value for capital expenditure. The fiscal support of 50% against the eligible project cost will be provided on pari-passu basis after the approval of the application, subject to terms and conditions stipulated in the Scheme / Guidelines / Approval Letter.
The objective is to attract large investments for setting up display fabrication facilities in the country to strengthen the electronics manufacturing ecosystem.
The Scheme shall extend a fiscal support of 50% of the project cost for setting up of Display Fabs in India. The application should meet the threshold value for capital expenditure. The fiscal support of 50% against the eligible project cost will be provided on pari-passu basis after the approval of the application, subject to terms and conditions stipulated in the Scheme / Guidelines / Approval Letter.
The objective is to attract investments for setting up Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including MEMS) Fabs/ Discrete Semiconductors Fabs and Semiconductor ATMP / OSAT facilities in the country to strengthen the electronics manufacturing ecosystem and help establish a trusted electronics value chain in the areas of application of these fabrication and packaging technologies.
The scheme shall extend a fiscal support of 50% of the Capital Expenditure for setting up of Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including MEMS) Fab/ Discrete Semiconductor Fab and Semiconductor ATMP / OSAT facilities in India. The fiscal support of 50% against the capital expenditure will be released on pari-passu basis after the approval of the application, subject to terms and conditions stipulated in the Scheme / Guidelines / Approval Letter and meeting the threshold value for capital expenditure.
The Design Linked Incentive (DLI) Scheme shall offer financial incentives as well as design infrastructure support across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs),
Systems & IP Cores and semiconductor linked design over a period of 5 years with the objectives of:
Production Linked Incentive Scheme 2.0 for IT Hardware notified vide Gazette Notification No. CG-DL-E-30052023-246165 dated May 29, 2023 offers a production linked incentive to boost domestic manufacturing and attract large investments in the value chain.
The Scheme shall extend an average incentive of around 5% on net incremental sales (over base year) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of six (6) years. The Target Segment under PLI shall include (i) Laptops (ii) Tablets (iii) All-in-One PCs (iv) Servers and Ultra Small Form Factor (USFF).
Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme has been notified vide Gazette Notification No.CG-DL-E-01042020-218991 dated April 01, 2020 with the objective to address the disabilities, by providing support for creation of world class infrastructure along with common facilities and amenities, including Ready Built Factory (RBF) sheds / Plug and Play facilities for attracting major global electronics manufacturers along with their supply chain to set up units in the country.
The EMC 2.0 Scheme provides financial assistance for setting up of both EMC projects and Common Facility Centres (CFCs) across the country. The Scheme is open for receipt of application up to 31st March 2024 (after extension). Further, disbursement of funds is available up to March 2028, to the approved projects.
Government approved the Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) to be implemented over FY 2021-22 to FY 2028-29 with a budgetary outlay of Rs. 6,238 crore.
The main objectives of the scheme are removing sectoral disabilities, creating economies of scale, enhancing exports, creating a robust component ecosystem and employment generation.
Support under the Scheme will be provided to companies/entities engaged in manufacturing of components of Air Conditioners and LED Lights in India.