New Electronics Policy aims at making Andhra Pradesh a global hub

New Electronics Policy aims at making Andhra Pradesh a global hub

New Electronics Policy aims at making Andhra Pradesh a global hub


  • Creation of world-class electronic manufacturing infra, improved EoDB, a host of incentives are the salient features of the policy
  • Cabinet approves AP Electronics Policy 2021-24
  • Policy framework includes promotion of a top-end greenfield YSR EMC being developed at Kopparthy in Kadapa district


Amaravati: The state Cabinet on Tuesday approved the Andhra Pradesh Electronics Policy 2021-24, which facilitates the creation of world-class electronics manufacturing infrastructure, improvement of Ease of Doing Business (EoDB) considerably through various process reforms, and offering a host of incentives aimed at reducing the cost of doing business in the state. The policy is envisaged to transform the state into a global hub for electronics manufacturing by focusing on the entire manufacturing value chain, assembly operations, electronics components manufacturing, research and development (R&D), semiconductor and display fabrication, according to G Jaya Lakshmi, principle secretary, information and technology, electronics and communications (IT, E&C) department.

In a statement, Jaya Lakshmi said the electronics manufacturing industry is among the fastest growing sectors domestically, with the market size expected to reach USD 400 billion from the present USD 104 billion, by 2025. The new policy envisages tapping a majority of new investments in the sector flowing to India and other South-east Asian countries, into Andhra Pradesh and thereby develop the state into a mature electronics manufacturing ecosystem.

She said the salient features of the policy framework include the promotion of a world-class greenfield Electronics Manufacturing Cluster (EMC), YSR EMC, being developed in Kopparthy in Kadapa district, introduction of a Production Linked Incentive (PLI) scheme in the greenfield clusters which dovetails with Government of India's schemes and incentivises Electronics manufacturers who expand their operations in Andhra Pradesh and increase their production which also leads to higher employment generation in the state.

The principle secretary said Andhra Pradesh expects to benefit greatly from this first-of-its-kind incentive scheme at a state government level and envisions creating at least 39,000 direct jobs in the electronics manufacturing sector. Most of those jobs are expected to be women workforce as has been seen in the electronics industry in the past, and hence the policy will also aid in empowerment of women through financial independence.

Jaya Lakshmi said the IT,E&C department is currently engaging with several major electronics manufacturers for establishing their facilities in the state, with a potential of generating upwards of 20,000 direct jobs.

The policy framework is a major milestone in the journey of Andhra Pradesh to become a preferred investment destination for electronics manufacturing industry and is a testament to the investor friendliness of the government.

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