Electronics Component Manufacturing Scheme

Source:  ET

Context: Union Minister for Electronics & IT launched the guidelines and online portal for the Electronics Component Manufacturing Scheme (ECMS).

• Bengaluru-based Sarvam AI was selected to build India’s first indigenous AI foundational model under the IndiaAI Mission.

About Electronics Component Manufacturing Scheme (ECMS):

• What It Is?

• • ECMS is India’s first dedicated Production-Linked Incentive (PLI) scheme focused specifically on boosting electronics components manufacturing.
  • It aims to strengthen India’s role in the global electronics supply chain by enhancing domestic capabilities.

• Ministry Involved: Ministry of Electronics and Information Technology (MeitY)
• Budget: ₹22,919 crore outlay.
• Tenure: 6 years (FY 2025-26 to FY 2031-32) with 1-year gestation period.
• Objective

• • To attract global and domestic investments in electronics component manufacturing.
  • To increase Domestic Value Addition (DVA) and integrate Indian industries into Global Value Chains (GVCs).
  • To create 91,600+ direct jobs and contribute to India’s $500 billion electronics production target by 2030.

• Key Features:
  • Incentive Structures:
    • Turnover-linked incentives based on revenue generated.
    • Capex-linked incentives for investment in plants and machinery.
    • Hybrid model combining both turnover and capex incentives.
  • Employment Linkage: Incentives directly tied to job creation.
  • Target Segments:
    • Sub-assemblies (e.g., display and camera modules).
    • Bare components (e.g., multilayer PCBs, Li-ion cells).
    • Capital equipment and supply chain ecosystems.
  • Ease of Doing Business: Simple, transparent guidelines and a first-come, first-served application approach.
  • Focus on Quality: Companies must meet Six Sigma quality standards and establish domestic design teams.

About Sarvam AI:

• What It Is?

• • Sarvam AI is a Bengaluru-based startup focused on developing indigenous artificial intelligence models for India.

• Aim: To build India’s first indigenous AI foundational model, strengthening national capabilities in AI innovation under the IndiaAI Mission.
• Features:

• • Specializes in large language models and transformative AI technologies tailored to Indian languages and societal needs.
  • Will enable sovereign AI capacity, reducing dependency on global tech giants.