Andhra Pradesh Boosts Electronics Manufacturing with 50% Capex Support

The Andhra Pradesh government has unveiled an ambitious draft policy to position the state as a leading hub for electronics manufacturing in India. Announced on June 6, 2025, the policy offers 50% capital expenditure (capex) support for electronics component manufacturers, aiming to attract significant investments and enhance domestic value addition. This initiative aligns with the central government’s push to bolster India’s electronics ecosystem and reduce reliance on imports.

The plan goes beyond just funding. It offers extra perks based on how much a company sells, doubling the support given by the central government’s Electronics Component Manufacturing Scheme, which kicked off in April 2025. The state is also building ready-to-use industrial parks so companies can hit the ground running. Plus, they’re pouring resources into training workers and boosting research to create a thriving tech scene.

• Andhra Pradesh offers 50% capex support to boost electronics manufacturing
• New AP policy targets smartphone components to cut import reliance and drive exports
• Andhra Pradesh aims to be India’s electronics hub with incentives, parks, and R&D push

This policy zeroes in on key smartphone components like circuit boards, screens, camera parts, and other essentials that make up nearly half a phone’s cost. By focusing here, Andhra Pradesh wants to help Indian companies grow and compete globally. It’s all part of India’s bigger goal to become a $500 billion electronics powerhouse by 2030.

Industry folks are buzzing with excitement, saying this could bring in both local and international businesses. The state recently held a workshop in Tirupati with the Ministry of Electronics and the India Cellular and Electronics Association, showing they’re all in on India’s long-term economic vision for 2047.

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India’s electronics industry has already grown a ton, jumping from Rs 1.90 lakh crore in 2014-15 to Rs 9.52 lakh crore in 2023-24. With Andhra Pradesh offering big financial support and ready-made facilities, the state is ready to lead the charge in making India a global tech leader. This plan is set to create loads of jobs, spark new ideas, and put Andhra Pradesh on the map as a tech hub.