New Delhi, April 9 (IANS) India’s electronics manufacturing sector has received a major boost with the government notifying the much-awaited ‘Electronics Component Manufacturing Scheme' (ECMS), top industry bodies said on Wednesday.

The scheme marks a turning point for strengthening India’s component manufacturing ecosystem and increasing domestic value addition.

With a financial outlay of Rs 22,919 crore over six years, ECMS aims to generate production worth Rs 4.56 lakh crore, attract investments of Rs 59,350 crore and create nearly 91,600 direct jobs.

Applications for the scheme will open from May 1 for an initial period of three months and can be reopened based on industry response.

The India Cellular and Electronics Association (ICEA) Chairman Pankaj Mohindroo said this scheme would not only deepen India’s electronics supply chain but also help build strong Indian champions that can compete globally.

“The electronics sector has already made a mark, especially in mobile manufacturing. The ECMS will build on that momentum and help realise the dream of $500 billion in electronics production,” Mohindroo said, adding that India’s current strength in mobile phone exports proves the country’s capability to build a globally competitive ecosystem.

The ECMS scheme includes incentives such as turnover-linked support ranging from 4-10 per cent, a 25 per cent capex incentive, and a hybrid option for specific components.

These incentives are designed to address challenges like high capital requirements, long gestation periods, and scale limitations that have slowed growth in the past.

The SEMI IESA President Ashok Chandak lauded the scheme, saying it addresses long-standing issues in the components and sub-assembly space.

“The financial incentives, based on the unique needs of each segment, would drive domestic and foreign investment into the sector, reduce India’s dependency on imports, and integrate the country’s manufacturing ecosystem into the global value chain,” he said.

Chandak added that the scheme is expected to generate sustainable development, create massive job opportunities, and increase India’s competitiveness in global electronics trade.