Blueprint To Breakthrough: How UP’s Policy Push Is Reshaping Electronics Manufacturing In State

The global Electronics System Design and Manufacturing (ESDM) industry—arguably the fastest-growing sector on the planet—has become a defining force of modern economies. With a current valuation of $4.5 trillion and expected to balloon to $6.1 trillion by 2030, this industry isn’t just about semiconductors and sensors; it’s about reshaping how the world works, communicates, and creates.

Electronic System Design & Manufacturing refers to the process of designing, developing manufacturing, and assembling electronic systems & components, parts, sub-assemblies, materials etc. for various electronics verticals such as mobile manufacturing, consumer electronics, electrification, power electronics, computer/ information technology and communication etc. and so on including their entire value chain.

In India, the transformation is palpable. The country’s electronics production touched $115 billion in FY24, nearly quadrupling over the past decade. Projections for the next five years are even more promising, with expectations to multiply this figure by five times.

And Uttar Pradesh (UP), once better known for its agricultural heft, has quietly emerged as a critical nerve centre in India’s digital industrial revolution. Today, UP is the country’s largest exporter of consumer electronics—powered by a confluence of policymaking, infrastructure upgrades, and strategic industrial partnerships.

The Greater Noida region, in particular, has become a vibrant electronics hub. Home to two dedicated Greenfield ESDM clusters—located at Sector 24 along the Yamuna Expressway and at Ecotech VI and VII—the region is home to large-scale manufacturing facilities of three industry giants Samsung, OPPO, and VIVO.

As a result, Uttar Pradesh now accounts for 45 per cent of India’s smartphone manufacturing and 55 per cent of mobile components production—a staggering concentration of manufacturing capability in a single state.

Yet, for all this progress, a massive opportunity gap remains. India imported nearly $70 billion worth of electronic circuit boards in just the past year—underscoring the unmet domestic demand and making a compelling case for deeper backward integration in electronics manufacturing. That’s precisely the challenge UP’s policymakers are now tackling head-on.

The Background

Aiming to position Uttar Pradesh as a global electronics hub in the post-pandemic world, the Yogi Adityanath-led government unveiled a new Electronics Manufacturing Policy in August 2020.

This policy builds on the foundation laid by the Uttar Pradesh Electronics Manufacturing Policy (UPEMP) of 2017, which, according to the state government, had already surpassed its investment and employment generation targets within just three years of its launch—a testament to its early success and strong industry traction.

A brief look into how the 2017 policy has been a roaring success:

Flagship Factories: Samsung’s Mega Leap

South Korean consumer electronics major Samsung, which was founded in 1938, has played a pivotal role in transforming Uttar Pradesh into a critical node in India’s electronics manufacturing landscape. A landmark moment came in July 2018, when Samsung inaugurated its sprawling mobile manufacturing facility in Noida—hailed as the world’s largest mobile phone factory at the time.

The project was propelled forward under the Uttar Pradesh Electronics Manufacturing Policy, 2017, with Samsung investing Rs 4,825 crore in the facility. In return, the state government extended substantial support, offering around Rs 250 crore in incentives that included capital subsidies and stamp duty exemptions—a clear signal of UP’s investor-friendly governance.

Complementing state-level assistance, the Central government also provided a boost through its Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), granting an additional Rs 460 crore in financial incentives.

The factory in Noida, on the outskirts of New Delhi, will allow Samsung to make phones at a lower cost due to its scale at a time when other phone making hubs such as China are getting more expensive, analysts tracking the sector said.

Dixon Technologies: Made in UP, For the World

Dixon Technologies (India) is the largest home-grown design-focused and solutions company involved in contract manufacturing products across consumer durables, lighting, and cell phones markets in India.

Demonstrating its deep-rooted commitment to the Make in India vision, Dixon and its subsidiary operate nine state-of-the-art manufacturing facilities in Uttar Pradesh, out of a total of twenty-three across the country.

The most recent addition to its UP footprint is a cutting-edge facility in Noida, set up by its subsidiary Padget Electronics, which is dedicated to manufacturing smartphones for Xiaomi India, one of the world’s leading technology brands. With a capital infusion of ₹256 crore, this high-capacity unit is expected to generate approximately 5,000 jobs and boasts an annual production capability of 25 million units, reinforcing both Dixon’s scale and UP’s growing status as India’s electronics manufacturing nerve centre.

Fine Print

The new electronics manufacturing policy 2020 aims to position Uttar Pradesh as the preferred destination for electronics industry.

Focusing on mobile manufacturing, consumer durables, Telecom, IT hardware, Drone, Semiconductor (FAB), medical electronics, defense electronics, Robotics, IoT, these clusters are expected to generate approximately 4 lakh (0.4 million) employment opportunities, thereby empowering the state’s workforce and supporting inclusive economic growth.

To complement these clusters, the policy envisions the establishment of ESDM parks across the state in collaboration with public and private stakeholders, further expanding the state’s capabilities in electronics manufacturing and value-chain development. Additionally, the policy envisages establishing three Center of Excellence (CoE) in the state to promote research, innovation and entrepreneurship and startup culture in the ESDM sector.

To catalyze this shift, the policy offers a offers a comprehensive package of incentives to position the state as a premier hub for electronics manufacturing

At its core are generous policy highlights such as an interest subsidy of 5 per cent per annum on loans for units investing up to USD 25 million, subject to certain conditions. The policy also extends 100 per cent exemption on stamp duty for individual electronics units and the first transaction, with a 50 per cent exemption on the second transaction for land purchased or leased in Electronics Manufacturing Clusters (EMCs) or Electronics Parks.

Beyond these core incentives, the policy includes a suite of special incentives to attract large-scale investments. Anchor units can receive an additional capital subsidy ranging from 1.5 per cent to 5 per cent, while a 75 per cent subsidy is available on the first 200 acres of land, and 30 per cent on additional land purchases. Units can also avail of a one-time capital subsidy for establishing Effluent Treatment Plants (ETPs). Other notable incentives include electricity duty exemption for up to 20 years, a dual power grid network for FAB units, and subsidies for setting up Common Facility Centers—all designed to build a globally competitive and investor-friendly electronics manufacturing ecosystem in Uttar Pradesh.

To promote the MSMEs units in the electronics manufacturing sector, the state government also proposes to encourage the development of rental facilities on plug and play model through public private partnership. The policy will be valid for five years from the date of notification and a nodal agency will be set up under the IT department for its implementation.

“With the new UP Electronics Manufacturing Policy 2020, UP will be able to position itself as the leading state ready to welcome global investors making India as an alternative investment destination in the post Covid-19 scenario. It has a goal of inviting investment of Rs 40,000 crore in five years and four lakh direct employment,”

Taking Growth Beyond the West

Until recently, much of UP’s electronics manufacturing growth was concentrated in Noida, Greater Noida, and the Yamuna Expressway belt. The 2017 policy focused exclusively on these high-potential zones.

But the 2020 policy has widened the playing field.

Now, the entire state is open for investment—with special incentives to correct regional imbalances. For instance, land subsidies in economically underdeveloped regions like Bundelkhand and Purvanchal have been doubled. While investors in Madhyanchal and Paschimanchal regions receive a 25 per cent land subsidy, the figure rises to 50 per cent in Bundelkhand and Purvanchal. Electricity duty exemptions also scale with geography—from 50 per cent in the west to 75 per cent in Madhyanchal, and 100 per cent in Purvanchal and Bundelkhand.

This inclusivity is designed to democratize industrial development—and bring jobs to regions that have long remained economically stagnant.

“Noida, Greater Noida and Yamuna Expressway regions have established as one of the emerging mobile manufacturing hubs in the world which have attracted foreign direct investments from many countries. More than 60% of all mobile phones manufactured in India are from UP. To further accelerate the Electronics eco-system in the state, the coverage of the new electronics manufacturing policy 2020 has been extended to the entire state from the current EMZs (electronic manufacturing zones) of Noida, Greater Noida and Yamuna expressway regions. The incentives proposed in the policy shall be applicable to all units setting up their bases anywhere in state,” read a statement released by the state government.

Ground Realities: Where Things Stand

The policy is no longer just a vision on paper—it’s actively reshaping Uttar Pradesh’s industrial landscape. With electronics manufacturing clusters already taking shape along the Yamuna Expressway and in Greater Noida, the Yogi government is now setting its sights on a third EMC in eastern Uttar Pradesh, further expanding the state’s manufacturing footprint.

Confirming the development, state’s IT and electronics minister Sunil Kumar Sharma told, “EMC 1 is about to start and we have also announced EMC 2 in Greater Noida. One such cluster creates around 70,000 to 80,000 employment opportunities. Soon we will be starting work on EMC 3, which will be in eastern Uttar Pradesh.”

The EMC 1 of 100 acres located at YEIDA Sector 10, along the Yamuna Expressway, aims to be a modern electronics manufacturing hub, with Havells setting up a domestic appliance facility. The EMC 2 of 210 acres in Greater Noida is likely to facilitate the growth of the electronics system design manufacturing (ESDM) sector in the region.

The EMCs will function as manufacturing zones, promoting the growth of the ESDM sector by providing a robust infrastructure base for electronic manufacturing industries. The clusters will support various electronic verticals, including consumer electronics, lighting, power electronics, computers/IT, and telecom equipment, along with their entire value chain.

Final Word: India’s Digital Dreams, Powered by UP

As the world recalibrates post-pandemic supply chains, India is rapidly emerging as a preferred electronics manufacturing destination. And Uttar Pradesh—thanks to its policy clarity, industrial momentum, and infrastructure depth—is positioning itself not just to ride this wave, but to lead it.

The journey from being a policy laboratory to becoming a global electronics manufacturing powerhouse may have just begun, but if UP's current trajectory is any indication, its future is wired for success.