Elcina calls for longer runway for high-value electronics projects under India’s ECMS, advocating extended gestation periods to address complex machinery, customs, and testing delays that hinder project ramp-up and local production.
Elcina has called on the government to give high-value electronics projects a longer runway under India’s Electronics Component Manufacturing Scheme, arguing that imported machinery, long qualification cycles and delayed commissioning make the current one-year optional gestation period too short for complex factories.
The association, which represents electronics component makers, said the scheme has already drawn more than Rs 69,500 crore in investment across 106 approved projects and is expected to create about 75,000 direct jobs. It said the momentum now needs to be matched by more flexible implementation for projects that depend on specialised equipment and extended testing before production can stabilise.
According to the scheme guidelines published by the Ministry of Electronics and Information Technology, ECMS was designed to build a broader domestic ecosystem for components, sub-assemblies and capital equipment, with differentiated incentives linked to turnover, capital spending or a mix of both. Secondary descriptions of the programme say it was launched in April 2025 with an outlay of Rs 22,919 crore, later raised to Rs 40,000 crore in the Union Budget 2026-27 to reflect strong industry demand.
Elcina said the problem is particularly acute in segments such as multilayer printed circuit boards and high-density interconnect boards, where equipment delivery, customs procedures and spare-parts sourcing can slow the path to commercial production. It has asked for the optional gestation period to be extended to two years for multilayer PCBs and three years for HDI PCBs, while also seeking broader relief for other capital-intensive categories that face long ramp-up periods.
The body also wants customs duty exemptions to be expanded and clarified for specialised machinery, tools and critical spares, and for a fast-track customs channel to be introduced for ECMS-approved projects. It said the industry still relies heavily on imports from China for capital equipment, even as India tries to deepen local manufacturing capacity and reduce external dependence.
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