Gujarat Unveils Policy to Boost Electronics Manufacturing

• Gujarat aims to become a global electronics hub with new policy.
• Offers dual incentives and up to ₹12.5 crore for R&D centres.
• Includes turnover-linked incentives for six years for new projects.

Gujarat CM Bhupendra Patel has launched an electronics component manufacturing policy that aims to make the state the preferred destination for electronics development in the world. The policy intends to address the gap in human talent, foster innovation, and stimulate research and development.

Recognized institutions in Gujarat can avail of up to ₹12.5 Crores of support from Gujarat state to establish centres of excellence, finishing schools or applied research labs. The initiative aims to bring in investments into areas including multi-layer and HDI printed circuit boards, lithium-ion cells, SMD passive components, display and camera modules, and vital production machinery.

"Gujarat’s GECMS-2025 ensures a 100 per cent top-up on central support and guarantees timely disbursement of assistance. Also, once a project receives approval under the ECMS from MeitY, it will automatically become eligible for the same grant-in-aid in Gujarat. The State Government will disburse its incentive within 30 days of the Central Government releasing its assistance", stated the announcement.

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" Any projects approved by the Ministry of Electronics and Information Technology (MeitY) will be eligible for full central assistance when located in Gujarat, meaning they will be able to access Centre incentives, and state incentives. Gujarat State Electronics Mission will oversee the implementation of this policy, with applications due July 31", added the announcement.

The Gujarat Electronics Component Manufacturing Policy 2025 (GECMS-2025) aligns with the central electronics manufacturing scheme and will share the same timeframe. It applies to new and proposed projects and not to units that have already been helped under the Gujarat Electronics Policy 2022-28. The eligible units will also get turnover-linked incentives for six years.

"Gujarat has established itself as a leading manufacturing and automobile hub in India’s industrial landscape. With four semiconductor plants now operational in the state, the newly announced policy will further strengthen the upstream industries. This development will reduce import dependency and improve technological resilience. The policy aims to attract over ₹35,000 crore in new investments and create substantial high-skilled employment opportunities within the state’s electronics component manufacturing sector", concluded the announcement.