Moving from electronics assembly to component and material manufacturing is key to Atmanirbhar Bharat. Evaluate the role of the Electronics Components Manufacturing Scheme.

India has become a major electronics producer mainly through assembly. Domestic value addition is still only about 18–20% [1]. MeitY notified the Electronics Components Manufacturing Scheme (ECMS) on 8 April 2025 with ₹22,919 crore [2]. It targets this gap by supporting components, sub-assemblies, materials and capital goods. It is a sound first step, but it has not yet been proven in execution.

Role in deepening the value chain

• Upstream reach: ECMS has made its first-ever approvals for copper foil, cathode active material and specialty ceramics [3]. Copper foil goes into laminates for PCBs and Li-ion cells. This links electronics to the battery and EV chains.
• Strong industry response: Firms filed 249 applications worth ₹1,15,351 crore, nearly double the targeted ₹59,350 crore [4]. The outlay was raised to ₹40,000 crore in Budget 2026–27 [2].
• Scale and spread: Approvals now total 118 applications across 34 products and 16 States, with ₹77,051 crore of expected investment. About 50% of the approved units are MSMEs [3], so growth reaches beyond large firms.
• Complements ISM: ECMS runs alongside the Machines and Materials pillar of Semicon 2.0 [3]. Together they build a supplier base around India's chip fabs and packaging (OSAT) units.

Limitations

• Approvals are not output: By August 2026, only 38 approved plants were in production [2]. The ₹77,051 crore is planned investment, not money already invested.
• Thin yearly funding: ECMS got only ₹1,500 crore in 2026–27 against its ₹40,000 crore outlay [5]. PRS notes that payouts under MeitY's PLI schemes have lagged because they depend on firms meeting targets [5]. ECMS carries a similar risk.
• Dependence moves upstream: Cathode materials need lithium, nickel and cobalt, which India largely imports. Without secure minerals, self-reliance in components stays partial.
• Technology gaps: Capital goods and specialty materials still rely on foreign technology partners.

Verdict ECMS moves Atmanirbhar Bharat from "assembled in India" towards "supplied from India", and demand for it has been strong. Its real test is plants commissioned and value addition gained, not approvals counted. The government should publish a project-wise milestone tracker, link ECMS to the National Critical Mineral Mission, and set yearly budgets by expected milestones. These steps would turn its promise into lasting industrial depth, in line with SDG 9.