The Ministry of Electronics and Information Technology (MeitY) is reportedly seeking an enhanced allocation for its flagship Electronic Components Manufacturing Scheme (ECMS) in the forthcoming budget from the ministry of finance. This move could make ECMS the single largest component of MeitY’s overall budgetary demand for grants.
Strong industry response to the scheme has pushed the projected incentive outgo for ECMS to Rs 414.68 billion, which is about 1.8 times higher than the government’s original estimate of Rs 228.05 billion, according to official estimates. The scheme has a tenure of six years starting this financial year, including a possible one-year gestation period, with fund disbursements to be made on a staggered basis by the finance ministry.
In the previous budget, MeitY’s allocation saw a sharp rise of 48.1 per cent to Rs 260.26 billion in FY26, compared to revised estimates of Rs 175.66 billion in FY25. This increase was largely driven by higher spending on electronics and semiconductor manufacturing initiatives.
So far, total investment commitments under the ECMS stand at Rs 1.15 trillion, nearly double the original target of Rs 593.50 billion. The scheme is expected to generate production worth Rs 10.34 trillion over the next six years, which is 2.2 times higher than the initial projection. It is also projected to create 1,41,801 direct jobs, exceeding the original target of 91,600, in addition to a significant number of indirect employment opportunities.
