Andhra Pradesh Approves $600 Million Electronics Manufacturing Incentive Scheme

The Andhra Pradesh government has approved a draft Electronics Component Manufacturing Policy 4.0, offering $600 million in incentives to attract electronics component manufacturers and boost domestic production. This policy features significant benefits such as a 75% discount on land allotment, a six-year exemption from electricity taxes, and a 50% capital subsidy for the first ten companies investing at least Rs 2.5 billion over five years, or matching the central government's subsidy. These state incentives complement the Indian central government's $2.62 billion plan to strengthen local electronics manufacturing and reduce reliance on Chinese imports. The state's policy aims to support companies like Syrma SGS, which plans to establish India's largest printed circuit board plant with South Korean collaboration, and LG Electronics India Limited, which is investing $600 million in a major manufacturing plant in Sri City. India's electronics sector has grown robustly, now the world's fourth-largest smartphone supplier, with a goal to increase output to $500 billion by 2030, including $150 billion in components manufacturing. This comprehensive approach reflects Andhra Pradesh's strategic role in India's broader electronics manufacturing ambitions, fostering innovation and supply chain resilience.