Andhra Pradesh Govt Clears $600 Million Scheme for Electronics Component Units

The Andhra Pradesh government has cleared a draft policy offering up to $600 million (approx. ₹5,000 crore) in incentives to support electronics components manufacturing in the state. Reports suggest this is to attract factory investments and expand the state’s industrial base.

Land and Tax Benefits

As per the draft, companies setting up electronics components units in Andhra Pradesh will receive a 75% discount on land. They will also be exempt from electricity consumption taxes for 6 years. These measures are aimed at reducing operational costs for manufacturers in the initial phase.

Capital Subsidy and Investment

The scheme proposes a 50% capital subsidy for the first 10 companies that invest at least ₹2.5 billion over 5 years. Alternatively, the state may match the central government’s subsidy amount if it’s higher. These subsidies will apply to eligible companies that meet the investment threshold.

Central Government Scheme 

The state-level policy follows a similar national initiative announced in March 2025. The central government had approved a ₹229.19 billion ($2.62 billion) incentive plan to promote electronics component production across India. Both schemes are to strengthen domestic manufacturing and reduce import dependency.

India’s Electronics Output 

India’s electronics production has seen sharp growth in recent years. And it has more than doubled to $115 billion in 2024. The rise has been led by mobile manufacturing by global firms such as Apple and Samsung. India is now the fourth-largest smartphone producer globally.

Long-Term Targets

According to NITI Aayog, the country aims to reach $500 billion in total electronics production by FY2030. Out of this, $150 billion is expected to come from components alone. The target is part of India’s goal to expand its presence in global supply chains.

Read More: US Smartphone Imports from India Climb to 36% in 2025, Apple Leads Shift!

Conclusion 

Electronics manufacturer Syrma SGS has applied under the Andhra Pradesh scheme. The policy is currently in the draft stage and may evolve based on further approvals and feedback.

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