01
What is the Electronics Component Manufacturing Scheme?
The Electronics Component Manufacturing Scheme (ECMS) is a Government of India scheme that provides incentive support to strengthen domestic electronics component manufacturing.
It is relevant for manufacturers investing in electronics components, sub-assemblies, materials, machinery, capital equipment or related manufacturing facilities.
For businesses planning major investment in electronics manufacturing equipment, plant setup or component supply chain capacity, ECMS may offer subsidy and incentive support, subject to scheme conditions.
02
Understanding ECMS and Segment D for Electronics Manufacturers
ECMS has different target segments for different types of electronics manufacturing activities.
This page focuses on Segment D because it is relevant for the supply chain ecosystem and capital equipment used in electronics manufacturing.
This category may be useful for manufacturers planning investment in electronics manufacturing machinery, SMT lines, PCB assembly equipment, testing systems, plant setup, supply chain components or capital goods.
As per the current ECMS portal status, application windows for some other target segments have closed, while Segment D is currently open till 30 April 2027, subject to official updates.
03
Key Facts for Electronics Manufacturers
Important
Incentive approval is not automatic. Final eligibility depends on project category, eligible capex, employment-linked conditions, documents, scrutiny and verification.
04
Who Should Check Eligibility?
If you are planning to invest in electronics manufacturing equipment, machinery, testing systems, assembly lines, components, materials or capital goods, you should check whether your project fits the eligible category.
Before you commit to machinery purchase or application filing, verify three things:
- ✓Your project matches the eligible manufacturing category
- ✓You meet financial capability and employment-linked requirements
- ✓Your capex documents, quotations and project details are ready
GetMyCA can review your project details, capex break-up and document readiness before you apply.
Check ECMS Eligibility
Book Subsidy Consultation with GetMyCA before finalising machinery purchase or application filing.
05
Application Window and Timing
This subsidy opportunity is important for electronics manufacturers planning investment in components, machinery, plant setup, assembly lines, testing equipment or capital goods.
Eligible projects may receive capex incentive support of up to 25%, as per scheme requirements.
For this category, the application window is two years from 1 May 2025. Manufacturers should treat 30 April 2027 as the current key deadline, subject to any further official update.
Applicants should also check employment-linked, financial capability and other compliance conditions before filing.
06
Supply Chain Ecosystem: What May Be Covered?
Under this category, the supply chain ecosystem mainly refers to parts, components and materials used for electronics sub-assemblies and bare components.
If you manufacture components, sub-assemblies or materials used in electronics production, and not only finished electronic devices, this category may be relevant for your project.
Indicative examples may include the following, subject to eligible product category and official ECMS guidelines:
- ✓Laminate
- ✓Pre-preg
- ✓Copper foil
- ✓Separator
- ✓Cathode material
- ✓Anode material
- ✓Electrolyte
- ✓Glass cover
- ✓Polarizer film
- ✓Other eligible component materials as per scheme conditions
This list is indicative only. Final eligibility depends on ECMS guidelines, product category, project details, investment plan and verification.
07
Capital Goods and Machinery: What May Be Covered?
Capital goods and machinery generally refer to plant, machinery, equipment and tools used for electronics manufacturing.
Examples include:
- ✓Electronics manufacturing machinery
- ✓SMT line machinery
- ✓PCB assembly equipment
- ✓Testing and inspection systems
- ✓Assembly equipment
- ✓Packaging or processing equipment
- ✓Tools, dies, moulds, jigs and fixtures
- ✓Associated utilities used for manufacturing
Used, second-hand or refurbished machinery may be considered only where it has a minimum residual life of at least 5 years at the time of transfer and is supported by required valuation or residual-life documents as per scheme conditions.
Not every machine purchase qualifies. The machinery must be linked with eligible electronics manufacturing activity and satisfy scheme conditions.
08
25% Capex Incentive Explained
This category offers up to 25% incentive support on qualifying capital expenditure for eligible projects.
Out of this 25% rate, 5 percentage points are linked to cumulative incremental employment thresholds. If employment conditions are not met, the effective incentive may reduce to 20%, as per scheme rules.
Example: On a qualifying ₹10 crore investment
At 25%: potential incentive support up to ₹2.5 crore
At 20%: potential incentive support up to ₹2 crore, if employment-linked conditions are not met
Important: This is not a guaranteed incentive. Final approval depends on project eligibility, qualifying capex, submitted documents, employment-linked conditions, scrutiny and verification by the approving authority.
09
Minimum Investment and Financial Capability
For this category, the project should meet the ₹10 crore minimum investment requirement. The investment should be linked with eligible electronics manufacturing activity, such as components, machinery, equipment or plant setup.
Applicants may also need to show financial capability through a net worth certificate. As per scheme conditions, net worth should generally be at least 50% of the proposed investment.
If net worth is below the required level, a board resolution and source of funds may be required. The application will also be reviewed for category eligibility, documents and compliance requirements.
10
Eligible Capex vs Non-Eligible Capex
Under this category, incentive support is linked with qualifying capital expenditure. Not every business cost will qualify.
Eligible expenses may include:
- ✓Plant and machinery
- ✓Manufacturing equipment
- ✓Associated utilities directly linked to eligible manufacturing activity
- ✓Tools, dies, moulds, jigs and fixtures
- ✓Testing and inspection systems
- ✓Assembly equipment
- ✓In-house R&D or product development, where specifically allowed under the scheme
- ✓Other capital goods used directly in eligible electronics manufacturing activity
Special limits
Packaging, freight, insurance, erection and commissioning costs may be considered only within applicable limits, including the prescribed cap of 7.5% of base cost, as per ECMS conditions.
Expenses that should not be treated as eligible capex
- ✓Land
- ✓Building
- ✓Raw materials
- ✓Consumables
- ✓Unrelated business expenses
Before applying
Manufacturers should prepare a detailed cost break-up for machinery, equipment and project expenses. Keep invoices, quotations, supplier details and supporting documents ready for each major cost item.
11
Application Process
Check Eligibility
Review whether your investment, product category and project plan match ECMS conditions for eligible electronics manufacturing activity.
Prepare Documents
Gather project details, machinery quotations or invoices, financial records, company documents, capex break-up and employment-related information.
Submit and Respond to Clarifications
After filing, the application may go through review, clarification, approval and verification stages based on official requirements.
Approval and Claim Review
Final incentive approval and claim release depend on investment amount, eligible capex, documentation, compliance, employment-linked conditions and verification.
12
Documents Required for Application
Before applying, manufacturers should prepare company, financial, project and investment-related documents. The exact requirement may vary based on project category, investment type and latest ECMS guidelines.
Company and Financial Documents
- ✓Company registration details
- ✓PAN and GST registration
- ✓Financial statements
- ✓Net worth certificate
- ✓Board resolution and source of funds, if required
- ✓Bank details
Project and Investment Documents
- ✓Project report with manufacturing activity details
- ✓Product or category details
- ✓Investment breakdown / capex break-up
- ✓Machinery quotations or invoices
- ✓Supplier details
- ✓Employment plan or employment projections, if required
Project-Specific Requirements
For equipment or machinery investments, documents should show the purpose of equipment, cost details and how it supports eligible electronics manufacturing activity.
For supply chain component projects, documents should explain the product category, manufacturing process, proposed investment, production capacity and relevance to the electronics component ecosystem.
13
Common Mistakes to Avoid While Applying
Many manufacturers face delays because the application is not prepared with proper category, capex and document clarity.
14
How GetMyCA Helps Electronics Manufacturers
GetMyCA helps electronics manufacturers review ECMS eligibility, prepare documents and file applications with proper capex and project details.
Our support includes:
- ✓Eligibility checking
- ✓Project review
- ✓Eligible capex break-up
- ✓Document preparation
- ✓Net worth and financial capability document review
- ✓Machinery quotation or invoice review
- ✓Employment-linked requirement review
- ✓Application filing support
- ✓Clarification handling
- ✓Claim-related follow-up
We help manufacturers avoid wrong segment selection, weak documentation and incomplete capex presentation while applying for ECMS incentive support.
15
FAQs on Electronics Manufacturing Subsidy in India
What is the government scheme for electronics manufacturing in India?+
The Electronics Component Manufacturing Scheme is a Government of India scheme focused on strengthening domestic electronics component manufacturing and the electronics supply chain. For manufacturers planning investment in supply chain components, machinery, plant, equipment or capital goods, ECMS may offer relevant incentive opportunities depending on project eligibility.
What is ECMS Segment D?+
Segment D is a category under the Electronics Component Manufacturing Scheme. It focuses on the supply chain ecosystem and capital equipment used in electronics manufacturing.
Why is this page focused on Segment D?+
This page focuses on Segment D because it is relevant for manufacturers planning investment in supply chain components, capital goods, machinery, testing systems, assembly lines, SMT lines or PCB assembly equipment used in electronics manufacturing.
Who should check eligibility for this subsidy?+
Electronics manufacturers planning ₹10 crore or more investment in components, machinery, plant, testing equipment, inspection equipment, assembly lines or capital goods should check eligibility before finalising their capex plan.
What is the minimum investment requirement?+
For Segment D, the minimum investment requirement is ₹10 crore. However, meeting this threshold alone does not guarantee incentive approval.
What is the capex incentive under this category?+
This category offers capex incentive support of up to 25% for eligible projects, subject to qualifying capital expenditure, employment-linked conditions, documentation, scrutiny and approval.
Is the 25% incentive guaranteed?+
No. The 25% capex incentive should not be treated as guaranteed subsidy. Out of the 25% incentive rate, 5 percentage points are linked to cumulative incremental employment thresholds. If employment-linked conditions are not met, the effective incentive may reduce as per scheme rules.
Are PCB or SMT line machinery covered?+
PCB assembly equipment, SMT line machinery, testing systems and inspection equipment may be covered if they are linked to eligible electronics manufacturing activity and meet scheme conditions.
Are EV electronics, BMS or charger component machinery covered?+
EV electronics, BMS, charger component machinery or related capital goods may be considered only if the project fits eligible electronics manufacturing activity and official scheme conditions.
What documents are required for application?+
Common documents may include company registration details, PAN, GST registration, financial statements, net worth certificate, project report, manufacturing activity details, capex break-up, machinery quotations or invoices, supplier details, employment-related details, bank details and supporting records.
What is the deadline for application?+
For this category, the application window is two years from 1 May 2025. Manufacturers should treat 30 April 2027 as the current key deadline, subject to any further official update.
How can GetMyCA help?+
GetMyCA can help with eligibility review, project assessment, capex break-up, document preparation, financial capability review, application filing support, clarification handling and claim-related follow-up.
Ready to Check Your ECMS Eligibility?
Planning ₹10 crore or more investment in electronics manufacturing components, machinery or capital goods?
Talk to GetMyCA’s subsidy support team to review your eligibility, documents and application readiness before finalising your capex plan, machinery purchase or project filing.