Electronics 4.0 – Five-year roadmap targets manufacturing scale-up, cluster development, and global integration.
The Andhra Pradesh government has officially approved the Electronics Component Manufacturing Policy (ECMP) 2024–29, also known as Electronics Policy 4.0. The five-year policy offers a blend of fiscal incentives, infrastructure support, and targeted cluster development aimed at enhancing the State’s role in India’s electronics value chain.
The policy has been framed in alignment with the Centre’s Electronics Component Manufacturing Scheme (ECMS) and places strong emphasis on attracting both domestic and global firms to build capacity in strategic segments such as printed circuit boards (PCBs), optoelectronics, and display technologies.
Cluster-based manufacturing to anchor growth
At the heart of the new policy is the plan to develop component manufacturing clusters (CMCs) in locations such as Tirupati, Anantapur, Visakhapatnam, Kopparthy, and Nellore. These clusters will focus on different component verticals and will be equipped with shared infrastructure, plug-and-play factory shells, and customised logistics support to streamline setup timelines and reduce capital expenditure.
By improving the speed of doing business and offering sector-specific facilities, the State aims to create a conducive ecosystem that supports both high-volume manufacturing and advanced technology integration.
Incentive structure: Early mover advantage and central matching
A significant feature of the policy is the Early Bird incentive, which provides a 50% capital subsidy—paid in two equal annual instalments—to the first 10 projects that commit to investing at least ₹2.5 billion over five years. Notably, projects that opt for this early incentive will not be eligible for the separate matching subsidy.
For other qualifying applicants, the State will offer a 100% matching subsidy corresponding to the funds sanctioned and released by the Centre under ECMS. The State-level subsidy will be disbursed within six months of the central release, ensuring minimal funding delays.
In addition to capital subsidies, companies will also have access to several operational benefits, including:
- Land at 75% discounted rate
- 100% electricity duty exemption for six years
- Power cost reimbursement
- Net SGST reimbursement
- Stamp duty reimbursement
- Recruitment support
These incentives will be governed by the operational guidelines under ECMP 2024–29 and any future updates to the policy.
Syrma SGS proposal among first to align with policy
One of the first companies expected to benefit from the new framework is Syrma SGS, which plans to invest ₹18 billion to set up India’s largest PCB and copper clad laminate manufacturing facility in Andhra Pradesh. The project will be developed in partnership with South Korea’s Shinhyup Electronics, bringing in global technical expertise to support the initiative.
Approval for the project is anticipated shortly, with the application expected to be taken up by the State government next week.
(This development has already been covered in detail by Electronics For You Business. You can read more about it here.)
With growing national focus on reducing import dependence and building a self-reliant electronics ecosystem, Andhra Pradesh’s new policy sets the stage for sustained investment in foundational technologies.
