Electronics Component Manufacturing Scheme Incentive Advisory (ECMS)

Under the Electronics Component Manufacturing Scheme, an eligible company or LLP can claim a turnover-linked incentive of 1% to 10% on incremental sales, a capex incentive of 25%, or a hybrid of both, based on its target segment. Bizastra’s CA team handles eligibility, segment mapping, the incentive claim and disbursement.

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Capex incentive (Segment D)

Turnover-linked incentive

Target segments (A to D)

Scheme tenure

Overview

What Is the Electronics Component Manufacturing Scheme?

The Electronics Component Manufacturing Scheme (ECMS) is a central government scheme by the Ministry of Electronics and IT. Its aim is to build a strong, self-reliant base for making electronic components in India and to cut the country’s reliance on imports. Eligible companies and LLPs get one of three incentive types, a turnover-linked incentive of 1% to 10% on incremental sales, a capex incentive of 25% of the capital investment, or a hybrid of both, depending on the target segment they fall in. The scheme runs from FY 2025-26 to FY 2031-32.

The Four Segments

ECMS Target Segments and What They Cover

ECMS is split into four target segments. Your segment decides your incentive type. Each segment also has its own minimum investment, sales and incremental employment thresholds.

Segment	What it covers	Incentive type	Incentive
Segment A	Sub-assemblies	Turnover-linked	1% to 10% on incremental sales
Segment B	Bare components	Turnover-linked	1% to 10% on incremental sales
Segment C	Selected bare components	Hybrid	1% to 10% on incremental sales + 25% of capex
Segment D	Supply chain ecosystem and capital equipment for electronics manufacturing	Capex-linked	25% of capex amount

The turnover-linked incentive is calculated on incremental sales over the base year, FY 2024-25, for goods manufactured in India.

The Incentives

What ECMS Pays,in Detail

ECMS uses three incentive structures. Which one applies to you depends only on your target segment.

Incentive	Applies to	How it works
Turnover-linked incentive	Segment A, Segment B	An incentive of 1% to 10% on incremental sales, measured over the base year FY 2024-25, of goods manufactured in India.
Capex incentive	Segment D	An incentive of 25% of the capex amount, that is 25% of the eligible capital investment.
Hybrid incentive	Segment C	A combination of both, a 1% to 10% incentive on incremental sales over FY 2024-25, plus 25% of the capex amount.

The right structure changes the size of your claim. A capital-heavy Segment D unit is best served by the 25% capex incentive, while a fast-scaling Segment A or B unit gains more from the turnover-linked route. Bizastra confirms your correct segment first, then models the incentive so nothing is left unclaimed.

Who Can Apply

ECMS Eligibility and Conditions

ECMS is open to companies and LLPs that meet the scheme’s thresholds and conditions. The main rules are below.

Eligible entity

Only companies and LLPs registered in India can apply. Proprietorships and partnerships outside the LLP structure are not eligible.

Threshold criteria

You must meet the minimum threshold investment, minimum threshold sales, and minimum incremental employment set for your target segment.

Greenfield or brownfield

Both greenfield (new) and brownfield (expansion) investments qualify for the target segment, so an existing manufacturer can apply too.

Three conditions must hold. First, the investment must be made on or after 8 April 2025. Second, both greenfield and brownfield investment for the target segment is eligible. Third, there must be no insolvency or winding up proceedings admitted against the applicant in the National Company Law Tribunal (NCLT).

Timelines

Application Windows and Scheme Tenure

The application window depends on your segment. The scheme tenure, over which the incentive is earned, is the same for all.

Item	Detail	Status
Application window, Segments A, B and C	1 May 2025 to 31 July 2025	Closed
Application window, Segment D	Open for two years from 1 May 2025 (into 2027)	Open
Scheme tenure	FY 2025-26 to FY 2031-32	Active
Tenure with gestation option	FY 2026-27 to FY 2032-33	Optional
Base year for turnover incentive	FY 2024-25	Fixed

Windows can be revised by government notification. Bizastra confirms the live status for your segment before you file.

How We Help

How Bizastra Handles Your ECMS Claim

Classify and Assess

We confirm your target segment (A, B, C or D), check your investment, sales and employment against the thresholds, and map the incentive that applies.

Structure and File

We structure your capex and incremental sales correctly, prepare the documents, and file the application within the right window for your segment.

Follow Up and Disburse

We manage compliance, CA certification and follow-up through to disbursement of your turnover-linked or capex incentive over the scheme tenure.

Why BizAstra

CA-Led Subsidy Advisory, End to End

Scheme specialists

We work on central and state manufacturing incentive schemes every day, so the fine print of ECMS holds no surprises.

Right segment, right incentive

Your segment decides whether you claim the turnover, capex or hybrid incentive. We confirm it before you file.

Nothing left unclaimed

We model both incentive routes where they apply, so your claim reflects your full entitlement under the scheme.

CA certification in-house

Calculations and certifications are handled by our own CA team, which keeps your file clean and fast.

Check If Your Electronics Unit Qualifies

Send us your project details and our CA team will confirm your target segment, thresholds and the incentive you can claim under the Electronics Component Manufacturing Scheme.

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Frequently Asked Questions

ECMS: Common Questions Answered

What is the Electronics Component Manufacturing Scheme (ECMS)?

ECMS is a central government scheme by the Ministry of Electronics and IT to build a strong electronics component manufacturing base in India. It gives eligible companies and LLPs a turnover-linked incentive of 1% to 10% on incremental sales, a capex incentive of 25% of the capital investment, or a hybrid of both, depending on the target segment. The scheme runs from FY 2025-26 to FY 2031-32.

Who is eligible for ECMS?

Only companies and LLPs registered in India can apply. Applicants must meet the minimum threshold investment, minimum threshold sales and minimum incremental employment set for their target segment. Both greenfield and brownfield investments are eligible, provided the investment is made on or after 8 April 2025 and there are no insolvency or winding up proceedings admitted against the applicant in the National Company Law Tribunal (NCLT).

What incentives does ECMS give?

ECMS offers three incentive types by segment. Segments A and B (sub-assemblies and bare components) get a turnover-linked incentive of 1% to 10% on incremental sales over the base year FY 2024-25. Segment D (supply chain ecosystem and capital equipment) gets a capex incentive of 25% of the capex amount. Segment C (selected bare components) gets a hybrid of both, a 1% to 10% turnover incentive plus 25% of capex.

What are the four target segments under ECMS?

Segment A covers sub-assemblies. Segment B covers bare components. Segment C covers selected bare components. Segment D covers the supply chain ecosystem and capital equipment for electronics manufacturing. Each segment has its own incentive type and its own minimum investment, sales and employment thresholds.

Is ECMS still open to apply?

The application window for segments A, B and C ran from 1 May 2025 to 31 July 2025 and is now closed. Segment D, which covers the supply chain ecosystem and capital equipment, is open for applications for two years from 1 May 2025, so it remains open into 2027. Bizastra will confirm the exact status for your segment before you apply.

What is the base year and tenure of ECMS?

The base year for the turnover-linked incentive is FY 2024-25, and the incentive is paid on incremental sales over that base. The scheme tenure runs from FY 2025-26 to FY 2031-32. For applicants who opt for the gestation period, the tenure is taken as FY 2026-27 to FY 2032-33.