Andhra Pradesh Clears $600 Million Scheme For Electronic Components Manufacturing: Report

Andhra Pradesh on Friday (1 August) approved a draft scheme that will provide $600 million in incentives to foster local electronics component manufacturing, news agency Reuters reported.

Earlier in March, the Central government had approved a larger initiative worth Rs 22,919 crore ($2.62 billion) to enhance electronics components manufacturing across India.

The centre and several state governments are actively trying to attract investments from electronics component makers, offering subsidies to strengthen domestic supply chains and reduce reliance on China.

India’s electronics production has surged over the past six years, reaching $115 billion by 2024, driven by mobile manufacturing growth from global giants like Apple and Samsung. India is now the fourth-largest smartphone supplier globally.

The Andhra Pradesh government reportedly said that electronics firms establishing factories in the state will receive a 75 per cent discount on land, alongside a six-year tax exemption on electricity consumption.

Under its draft policy, the state plans to grant a 50 per cent capital subsidy to the first ten companies investing Rs 250 crore over five years, or match the subsidy offered by the Centre.

Syrma SGS, an electronics manufacturer, has applied for the incentive scheme, according to the Andhra Pradesh government.

Also Read: Andhra Pradesh Aims For $150 Billion in Investments With Launch Of Electronics Policy 4.0