Andhra Pradesh Approves $600M Plan to Boost Electronics Output

• Andhra Pradesh announced a $600 million incentive plan to boost electronics component manufacturing
• Benefits include 75% land discount and tax exemptions for early investors
• Part of India’s $500B electronics vision by 2030, with Syrma SGS as an early applicant

Andhra Pradesh, a state in southern India, is set to offer $600 million in incentives with a draft scheme for the domestic manufacture of electronic components.

 This scheme is similar to the Indian central government's draft scheme that promised a much larger, ₹229.19 billion ($2.62 billion) but also intended to entice investment with a produced component, on a national level. This is part of India's larger effort to build a domestic electronics ecosystem and to lessen reliance on foreign imports, especially from China.

There has been an explosion of electronics production in India, more than doubling over six years, and projects to reach $115 billion in 2024. Mobile manufacturing has been a driving force in this growth and attracted large global producers, such as Apple and Samsung, to increase their supply chains in India.

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Today, India is the 4th largest producer of smartphones and the Indian government think tank NITI Aayog is aiming for $500 billion in electronics production by fiscal 2030, of which $150 billion would be from component production.

As per Andhra Pradesh’s new draft policy: Electronics component makers building a new footprint in the state will received land at 75% discount on government land and a six-year exemption from paying electricity consumed to power their plants.

First 10 companies investing a minimum of ₹2.5 billion over five years will be entitled to a capital subsidy of 50% or matching grant, compliant with incentive schemes announced by the central government.

State has also declared electronics company Syrma SGS has already filed an application under the proposed scheme, implying an early indication for industry interest and momentum towards establishing Andhra Pradesh a viable competitive electronics manufacturing state.