Relevance for UPSC: GS III (Industry, Science & Technology); Source: PIB, Ministry of Electronics and Information Technology

Context

The Ministry of Electronics and Information Technology has approved 22 new projects under the Electronics Component Manufacturing Scheme with a combined investment of ₹41,863 crore. The scheme has an overall outlay of ₹22,919 crore to strengthen India’s electronics component ecosystem.

What the Scheme Does

  • Provides production-linked incentives tied to incremental output and employment.
  • Follows a “first-to-finish” approach to reward timely capacity creation.
  • Targets components and sub-assemblies—the weakest link in India’s electronics value chain.
  • Covers large firms and MSMEs, enabling scale and supplier depth.

Why It Matters

  • Reduces import dependence in electronics, a highly import-intensive sector.
  • Builds supply-chain resilience amid global diversification (China+1).
  • Boosts employment and value addition, moving beyond assembly.
UPSC Value Box

  • Policy convergence: PLI for Electronics, India Semiconductor Mission, EMC 2.0
  • Objective: Shift from assembly-led to component- and design-led manufacturing
  • Challenges: Technology gaps, skilled manpower, testing infrastructure
  • SDGs: SDG 9 (Industry & Innovation)

Conclusion

ECMS approvals signal a structural deepening of India’s electronics manufacturing, critical for competitiveness, jobs, and technological self-reliance.

Q. The Electronics Component Manufacturing Scheme primarily aims to:
A. Promote electronics retail
B. Incentivise final assembly only
C. Strengthen domestic component manufacturing
D. Subsidise imports

Correct Answer: C

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