UP, Tamil Nadu & Gujarat Offering Competitive Incentives To Attract Electronics Manufacturing

(MENAFN- KNN India) New Delhi, May 9 (KNN) Uttar Pradesh and Gujarat are developing specialised incentive programs to attract large-scale electronics component manufacturers, joining several states competing for investments following the Central Government's Rs 23,000 crore Electronics Component Manufacturing Scheme (ECMS).

Gujarat, which has emerged as a hub for electronics and semiconductor manufacturing with projects from Micron, CG Power, and Tata Electronics in various stages of development, has advanced in its policy formulation efforts.

"We have submitted a draft policy for incentivising electronic component manufacturing in Gujarat for final consideration," confirmed Mona Khandhar, Principal Secretary, Science and Technology, Gujarat, though she noted that specific details await government approval.

Uttar Pradesh is similarly preparing its policy framework, leveraging Noida's growing reputation as an electronics manufacturing center.

According to sources familiar with the matter, the state is currently drafting its policy, which is expected to be released within weeks.

Meanwhile, Karnataka is evaluating whether its existing Electronics System Design and Manufacturing policy requires enhancement to remain competitive in the changing landscape.

Tamil Nadu has established itself as a frontrunner in this competitive environment by swiftly implementing its own complementary incentive program.

On April 30, the state announced the Tamil Nadu Electronics Components Manufacturing Scheme, which offers matching grants to companies that qualify under the Central Government's ECMS.

"Following Tamil Nadu's swift rollout of ECMS-specific support, a competitive momentum has emerged among states to boost electronics manufacturing within their borders," observed Ashok Chandak, President, India Electronics and Semiconductor Association.

He further noted that beyond the early movers, states including Madhya Pradesh, Odisha, Chhattisgarh, Maharashtra, and Haryana are also positioning themselves to secure investments in India's expanding electronics value chain.

The Central Government's ECMS aims to attract investments of Rs 59,350 crore, generate production worth Rs 4,56,500 crore, and create 91,600 direct jobs along with numerous indirect employment opportunities during its implementation period.

The six-year program is designed to complement the smartphone production-linked incentive scheme by enabling higher value addition and supporting semiconductor initiatives.

A key objective of these coordinated central and state policies is to significantly increase India's value addition in electronics manufacturing, which currently stands at approximately 20 percent.

(KNN Bureau)

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