(MENAFN- KNN India) Amaravati, Aug 1 (KNN) The Andhra Pradesh government on Friday approved a draft scheme offering USD 600 million in incentives to attract electronics component manufacturers and strengthen domestic production capabilities.

The move complements a broader national initiative announced in March, when the central government approved a Rs 229.19 billion (approximately USD 2.62 billion) plan to support local electronics components manufacturing.

These measures are part of India's strategy to reduce reliance on Chinese imports and build a resilient supply chain for the rapidly expanding electronics sector.

India's electronics production has seen robust growth, more than doubling over the past six years to reach USD 115 billion in 2024.

This expansion has been driven in large part by mobile manufacturing, with major global players like Apple and Samsung scaling up operations.

India currently stands as the world's fourth-largest smartphone supplier and aims to raise overall electronics output to USD 500 billion by fiscal 2030, including USD 150 billion in components manufacturing, according to NITI Aayog.

Under the draft policy, Andhra Pradesh will provide significant incentives to firms establishing manufacturing units in the state.

These include land allotment at a 75 percent discount and a six-year exemption from electricity taxes.

Additionally, the first 10 companies investing at least Rs 2.5 billion over five years will be eligible for a 50 percent capital subsidy or a matching grant equivalent to the central government's subsidy.

(KNN Bureau)

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