After Tamil Nadu, Gujarat & UP To Join Electronics Manufacturing Race: Report

After Tamil Nadu, now Gujarat and Uttar Pradesh are reportedly aiming to become key hubs for electronics components manufacturing. 

Gujarat, which has already earmarked sites in Dholera and Sanand for semiconductor units by Micron, Tata Electronics and others, recently submitted a draft policy to incentivise and boost electronics components manufacturing, as per an ET report.

“We have submitted a draft policy for incentivising electronic component manufacturing in Gujarat for final consideration,” Mona Khandhar, Gujarat’s principal secretary, science and technology, told the publication.

The details of the policy will be disclosed once the state government approves the policy, she added. 

In the manufacturing space, Uttar Pradesh is also among the top states planning to secure their positions in the country’s electronics components ecosystem. The state is working on a draft policy which may be finalised in a few weeks, a person privy to the matter told ET. 

The development comes after Tamil Nadu launched the state’s Electronics Components Manufacturing Scheme (ECMS) on April 30.

The scheme will look to attract INR 30,000 Cr worth of investments and generate 60,000 jobs in the state. Under the initiative, the state government will match the IT ministry’s grants for certain eligible applicants who have qualified for the Centre’s ECMS. 

Notably, it is aimed at promoting local manufacturing of electronics components, and complements the state’s Semiconductor and Advanced Electronics Policy, which was introduced in 2024.

These state governments’ are making moves in alignment with the Centre’s effort to make India an electronics manufacturing ecosystem. 

The union cabinet in March approved the production-linked incentive (PLI) scheme for non-semiconductor electronics components with an outlay of INR 22,919 Cr in an effort to boost India’s self-reliance in the electronics supply chain. 

The scheme looks to attract an investment of INR 59,350 Cr, resulting in production of INR 4,56,500 Cr, and generating additional direct employment of 91,600 persons and many indirect jobs as well.

The tenure of the scheme is six years with one year of gestation period. Payout of a part of the incentive is also linked with employment targets achievement.

The components manufactured will serve sectors, including telecom, consumer electronics, automobile and medical devices, among others.

It is important to note that the Indian government is making consistent moves to reduce the country’s dependency on the global powers by boosting its own manufacturing capabilities in the electronics sector. 

India produced electronics goods worth INR 9.52 Lakh Cr in FY24, against INR 1.90 Lakh Cr in FY15, as per the Economic Survey 2024-25.