The government of Andhra Pradesh has announced a draft policy to promote electronics component manufacturing by providing 50 per cent capital expenditure (capex) support to companies setting up in the state. The move is aimed at positioning Andhra Pradesh as a key hub for electronics manufacturing.
The policy also proposes turnover-linked incentives that double the central government’s benefits under its nationwide electronics component manufacturing scheme launched in April.
To further bolster the sector, the state plans to develop specialised infrastructure, plug-and-play industrial clusters, and initiatives to support talent development, skilling, and research and development (R&D).
The scheme aligns with the centre’s broader push to boost domestic value addition through a combination of capex support and turnover-based incentives. The scheme is aimed to make India a hub for printed circuit boards (PCBs), display and camera modules, electromechanical parts, and passive components, which together account for nearly 50 per cent of a smartphone’s bill of materials.
