Andhra Pradesh govt to fund 50% capex for electronics component makers

The Andhra Pradesh government will offer 50% support for capital expenditure for component manufacturers in the state in a bid to position the state as a top destination for electronics manufacturing.

In a workshop organised by the Ministry of Electronics and Information Technology (MeitY) and India Cellular and Electronics Association (ICEA), the Andhra Pradesh government announced a draft electronics component manufacturing policy offering a framework to stimulate investment in the state from the electronics manufacturing sector,

Under the policy, the Andhra Pradesh government will also offer turnover linked incentives, doubling the centre's incentives in the electronics component manufacturing scheme announced in April.


The government plans to build specialised infrastructure and plug-and-play clusters to support the industry, and support talent development, skilling, and R&D.

The scheme complements the center's policy on pushing electronics component manufacturing in India to deepen domestic value addition through a combination of capex support and turnover-based incentives.

The scheme is aimed to make India a hub for manufacturing PCBs, display and camera modules, electromechanic components, and passive components. These make up almost 50% of the bill-of-materials in a smartphone.