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States Urged to Collaborate on Centre’s Scheme to Boost Electronics Manufacturing

2025-06-09

States must collaborate and leverage the Centre’s scheme to promote domestic manufacturing of electronic components, aiming to position India as a global hub for components production, the India Cellular and Electronics Association (ICEA) said on Friday.

Several states, including Tamil Nadu, Assam, Uttar Pradesh and Andhra Pradesh, are developing their own policies to encourage component manufacturing locally. Speaking at an industry event in Andhra Pradesh, Sushil Pal, Joint Secretary at the Ministry of Electronics and Information Technology (MeitY), reiterated the government’s dedication to fostering domestic electronics manufacturing through a hybrid scheme. This scheme offers capital expenditure (Capex) support alongside turnover-linked incentives for component manufacturers.

He urged states to adopt a proactive role in the mission of transforming India into a powerhouse for component manufacturing.

At the event, Bhaskar Katamneni, Secretary of IT & Electronics for Andhra Pradesh, unveiled the draft Electronics Component Manufacturing Policy (ECMP) aimed at boosting electronics component manufacturing in the state.

“We are not only promoting ease of doing business but also enabling the ‘speed of doing business’. Andhra Pradesh is crafting a more competitive and agile policy framework compared to the national landscape,” said Katamneni. He added that the Andhra Pradesh ECMP is expected to be officially notified within the next ten days.

The draft policy includes measures such as 50 per cent Capex support for component manufacturers, turnover-linked incentives that double those provided by the Centre, development of specialised infrastructure and plug-and-play clusters, and facilitation of talent development, skilling and research and development support.

Pankaj Mohindroo, Chairman of ICEA, emphasised that the industry must now actively pursue high domestic value addition and establish a strong, resilient electronics manufacturing supply chain within India.

The event was attended by senior government officials from MeitY and the state government, as well as manufacturers, industry leaders and key stakeholders in the electronics ecosystem.