Budget 2026: Electronic Component Manufacturing Scheme Allocation May Double

• The IT Ministry has requested a significant increase in the allocation for the electronic component manufacturing scheme in the upcoming Budget 2026.
• The current scheme, approved in March 2025 with a budget of 22,919 crore rupees for six years, aims to build a robust ecosystem for electronics manufacturing in India.
• The scheme seeks to enhance Domestic Value Addition (DAV) and integrate Indian companies into Global Value Chains (GVC).
• It has received an overwhelming response, with 46 companies already approved and proposals worth over 1.15 lakh crore rupees submitted.
• In early January, 22 new proposals from companies like Dixon, Motherson, Hindalco, and BPL were approved under the Electronic Component Manufacturing Scheme (ECMS).

Why It Matters: The Budget 2026 is expected to double the allocation for electronic component manufacturing, boosting domestic production.