ICEA, MeitY to boost components manufacturing in Andhra Pradesh

Several Indian states, including Tamil Nadu, Assam, Uttar Pradesh, and Andhra Pradesh, are developing their own policies to promote electronics component manufacturing within their jurisdictions.

At a recent high-level industry event, Sushil Pal, Joint Secretary at the Ministry of Electronics and Information Technology (MeitY), reiterated the Government of India’s commitment to supporting domestic electronics manufacturing. He highlighted a hybrid incentive scheme that combines capital expenditure (Capex) support with turnover-linked incentives for component manufacturers. He also emphasized the important role that state governments must play in positioning India as a global hub for electronics component manufacturing.

As part of this broader initiative, the Government of Andhra Pradesh introduced its draft Electronics Component Manufacturing Policy, Bhaskar Katamneni, Secretary of the IT, Electronics & Communications (ITE&C) Department, presented the draft during the event. He noted that the state is not only promoting ease of doing business but also aiming to improve the "speed of doing business" by offering a more agile and competitive policy environment compared to the national framework.

The Andhra Pradesh Electronics Component Manufacturing Policy is expected to be formally notified within the next 10 days. Key proposals under the draft policy include:

• Capital expenditure support covering up to 50% for component manufacturers.

• Turnover-linked incentives that exceed those offered by the central government.

• Development of specialized infrastructure, including plug-and-play manufacturing clusters.

• Initiatives for talent development, skill training, and research and development support.

Industry representatives, including Pankaj Sharma, President of Dixon Technologies, and Nitin Bajaj, COO of Neolync, shared their positive experiences operating in Andhra Pradesh and acknowledged the state’s supportive ecosystem and policy initiatives.

Addressing the workshop, Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA), stressed the need for states to collaborate and make full use of central government schemes to boost domestic electronics manufacturing. He emphasized the importance of increasing domestic value addition and strengthening the supply chain to achieve long-term sustainability in the sector.

These discussions took place during an Investment Promotion Workshop held in Tirupati, jointly organized by ICEA and the Ministry of Electronics and IT, Government of India. The event aimed to raise awareness about the Electronics Component Manufacturing Scheme (ECMS) and was attended by senior officials from the central and state governments, as well as representatives from the electronics manufacturing industry.