Odisha Cabinet has approved a new Electronics Component Manufacturing Policy to match central incentives and position the state as a leading electronics hub.
On 25 August 2025, the Odisha Cabinet approved the Electronics Component Manufacturing Policy, 2025 in a meeting chaired by Chief Minister Mohan Charan Majhi. The move positions Odisha as a major domestic electronics component manufacturing hub, directly aligned with the Centre’s recently cleared Electronics Component Manufacturing Scheme (ECMS).
Chief Secretary Manoj Ahuja said, “Following the Union Cabinet’s recent approval of the Electronics Component Manufacturing Scheme (ECMS), the Odisha government has decided to launch its own Odisha Electronics Component Manufacturing Policy-2025.”
The policy offers investors a choice of 50 per cent capital subsidy for the first 10 large-scale projects or a matching subsidy with turnover-linked incentives and additional capital subsidies. Other benefits include land allocation support, rental assistance, a 10-year exemption from electricity duty and power tariff reimbursements.
For mega projects investing over ₹500 crore or creating more than 1,000 jobs, the state has included tailored incentive packages. This is expected to significantly boost local manufacturing of semiconductors, passive components, and sub-systems, reducing reliance on imported electronic components.
The Odisha government emphasised that the policy is a strategic push to create high-skilled employment while strengthening the state’s role in the national electronics value chain.
In addition, the Cabinet also approved the Odisha IT Policy, 2025, which aims to generate 10 lakh direct and indirect jobs in the IT/ITES sector. The IT policy promotes technologies such as cybersecurity, data analytics, 5G, IoT, AR/VR, cloud computing, deep learning, blockchain, AI and ML, supported by incentives including capital and interest subsidies, rental support, and SGST reimbursement.
With these twin policies, Odisha is seeking to emerge as both a domestic electronics manufacturing hub and a technology-driven employment generator.
