It has been only 15 days since the government launched the government’s electronic component manufacturing scheme (ECMS) worth Rs 23,000 crore and meanwhile the government has received 70 applications. Union Minister Ashwini Vaishnav informed that there has been a lot of positive response in the industry regarding this scheme and the number of applications is increasing continuously.

MSMES share the most

Union Minister Vaishnav said that out of these 70 applications, about 80 percent of the applications have come from small and medium enterprises. This in itself shows that India’s MSME sector is seeing an opportunity in the government scheme and now they are ready to land on a large scale in the field of electronic manufacturing.

Big names also included in the race

Although the government has not officially mentioned the names of companies, according to sources, giants like Tata Electronics, FoxConn, and Dixon Technologies have also shown interest in this scheme. It is clear from this that not only small, but even big players are taking it seriously about the scheme.

Trying to fill the increasing demand and supply gap

This scheme has been started especially in view of the huge demand and reduction in supply of electronic components in India. According to ELCINA (Electronic Industries Association of India), if steps are not taken from now on, India may have to import components worth about 248 billion (21 lakh crore) by 2030. This scheme is a big effort to reduce this import-dependence.

What is in the scheme for whom?

A total budget of 22,805 crore has been kept under ECMS. Of this, 21,093 crore are for sub-government products, such as, camera module, multi-lecture printed circuit board (PCB), flexible PCB and passive components. At the same time, 1,712 crore has been kept for those machines and equipment which are used in the manufacture of these components.

Scheme categories and application deadline

The government has divided the scheme into four categories-

Category A: Display Module, Camera Module

Category B: Non-SMD components, batteries, mobile/IT hardware enclosure

Category C: Flexible PCB, SMD Passive Components

Category D: All components and capital goods are used in A, B, and C.

Of these, applications for A, B and C categories will start from May 1 and open for 3 months, while applications for D category will be open for 2 years.

Make in India getting new pace

The growing participation in this scheme of MSME sector shows that India’s small entrepreneur no longer wants to be limited to the service industry, but also wants to make its presence in the field of technology manufacturing. This scheme is a strong step towards making India a manufacturing hub in the electronics sector.