Question 1

The scheme provides incentives for manufacturing electric vehicle (EV) batteries to boost the automotive sector.

Accepted Answer

While ECMS covers lithium-ion cells, it strictly limits incentives to cells meant for digital applications (like smartphones and laptops), explicitly excluding mobility and energy storage cells.

Question 2

ECMS is just an extension of the existing Production Linked Incentive (PLI) scheme for smartphones.

Accepted Answer

ECMS operates differently; it introduces a mix of turnover-linked, capex-linked, and hybrid incentives specifically for upstream sub-assemblies, bare components, and manufacturing machinery, not final assembled devices.

Question 3

Consider the following statements regarding the Electronics Component Manufacturing Scheme (ECMS) notified in 2025:
1. It introduces hybrid incentives that are directly linked to employment generation.
2. It covers the manufacturing of lithium-ion cells for both digital devices and electric mobility applications.
3. The scheme includes provisions to incentivize the manufacturing of capital equipment used to make electronics.
How many of the above statements are correct?

Accepted Answer

(b) Only two — Statement 1 is correct: ECMS introduces hybrid incentives linked to job creation. Statement 2 is incorrect: It covers lithium-ion cells ONLY for digital applications, explicitly excluding mobility/storage cells. Statement 3 is correct: Segment D of the scheme specifically targets the supply chain ecosystem and capital equipment for electronics manufacturing.

Question 4

Match the Target Segments under the Electronics Component Manufacturing Scheme (ECMS) with their corresponding eligible products:

List I (Target Segment)
A. Sub-assemblies
B. Bare components
C. Selected bare components
D. Capital equipment

List II (Product Category)
1. High-density interconnect (HDI) and Flexible PCBs
2. Machinery for electronics manufacturing
3. Display and Camera modules
4. Multi-layer Printed Circuit Boards (PCBs) and Enclosures

Select the correct code:

Accepted Answer

(a) A-3, B-4, C-1, D-2 — Segment A (Sub-assemblies) covers Display and Camera modules (3). Segment B (Bare components) covers Multi-layer PCBs, non-SMD passives, and enclosures (4). Segment C (Selected bare components) covers HDI, MSAP, and Flexible PCBs alongside SMD passives (1). Segment D covers Capital equipment and machinery (2).

Question 5

Assertion (A): The Ministry of Electronics and Information Technology shifted its policy focus from purely finished goods PLIs to the Electronics Component Manufacturing Scheme (ECMS) offering capex and hybrid incentives.
Reason (R): Despite massive growth in the volume of finished electronics assembled in India, the Domestic Value Addition (DVA) remained low because 80-85 percent of the value chain relied on imported intermediate goods.
Select the correct answer:

Accepted Answer

(a) Both A and R are true and R is the correct explanation of A — Assertion is true as MeitY notified ECMS to target upstream components. Reason is true and correctly explains the Assertion: India successfully scaled assembly (forward linkage) but suffered from low DVA due to heavy import reliance for components. ECMS was launched specifically to fix this strategic vulnerability in the supply chain.

MeitY Notifies Electronics Component Manufacturing Scheme

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