Andhra Pradesh Unveils ₹4,600 cr Policy to Boost Electronics Manufacturing

Andhra Pradesh has unveiled a ₹4,600 crore policy to boost electronic component manufacturing, with incentives for manufacturers and development of strategic hubs like Sri City, Hindupur, and Kopparthy. The policy aims to attract $100 billion in investments and follows the Central government's Electronics Components Manufacturing Scheme. Syrma SGS and Daikin Industries are expected to benefit from the policy, with Syrma SGS planning a ₹1,800 crore project in partnership with Shinhyup Electronics.

Andhra Pradesh has announced a ₹4,600 crore policy aimed at bolstering the state's electronic component manufacturing sector. The policy, which includes substantial incentives for manufacturers, is expected to attract $100 billion in investments and develop strategic hubs such as Sri City, Hindupur, and Kopparthy [2].

The policy offers early bird incentives for the first ten projects, requiring a minimum committed investment of Rs 250 crore over five years. This includes a capital subsidy of up to 50 per cent of the investment, paid in two equal annual instalments. Additionally, land will be offered at a 75 per cent discounted price. Other incentives include a 100 per cent exemption on electricity duty for six years, reimbursement of power costs, SGST, and stamp duty. Recruitment assistance will also be provided [2].

This initiative follows the Central government's Electronics Components Manufacturing Scheme (ECMS), which offers incentives of around Rs 22,919 crore. The Andhra Pradesh government will provide a 100 per cent subsidy matching the amount approved and released by the Central government under the ECMS, disbursed within six months of the Centre releasing the corresponding incentive [2].

The policy is expected to benefit companies like Syrma SGS and Daikin Industries. Syrma SGS is planning a ₹1,800 crore project in partnership with South Korean firm Shinhyup Electronics, which will bring technological expertise to the venture [2].

The move comes as India's electronics production has reportedly doubled over the last six years to $115 billion, driven by global majors like Apple and Samsung [2]. Since Nara Chandrababu Naidu took charge in 2024, Andhra Pradesh has attracted a series of electronics sector investments, including LG Electronics India's Rs 5,000 crore unit, Daikin Industries' Rs 2,475 crore additional investment, Carrier Global's Rs 1,000 crore unit, Wingtech Mobile Communications' Rs 1,061 crore investment, and Sensorem Photonics India's Rs 9,246 crore expansion plans [2].

References:
[1] https://m.economictimes.com/industry/cons-products/electronics/andhra-pradesh-approves-plan-to-offer-up-to-600-million-for-electronic-components-production/articleshow/123039528.cms
[2] https://www.business-standard.com/economy/news/andhra-bets-big-electronic-component-manufacturing-policy-125080101591_1.html