Andhra Pradesh Electronics Component Policy 4.0 offering ₹4,600 crore incentives to attract $100B investments in Sri City, Hindupur, Orvakal & Kopparthy.
Andhra Pradesh Electronics Component Policy 4.0 with Mega Incentives to Attract $100B Investments
Amaravati, Andhra Pradesh – In a major push to position itself as India’s next electronics manufacturing hub the Andhra Pradesh government has approved the Electronics Component Manufacturing Policy 4.0 offering ₹4,600 crore in incentives to attract global and domestic players.
The policy targets $100 billion in investments across key locations like Sri City, Hindupur, Orvakal and Kopparthy, aligning with the state’s vision to become a leader in PCB manufacturing, semiconductors and electronic components.
Key Incentives Under the New Policy
✅ Early Bird Bonus – First 10 projects with ₹250+ crore investment get 50% capital subsidy (paid in 2 instalments).
✅ Land at 75% Discount – Significant cost reduction for setting up manufacturing units.
✅ 100% ECMS Subsidy Match – State will fully match Central government’s Electronics Component Manufacturing Scheme (ECMS) incentives.
✅ Power & Tax Benefits –
- 100% electricity duty exemption for 6 years
- SGST reimbursement & stamp duty waiver
- Recruitment support as per policy guidelines
Why This Policy is a Game-Changer?
🔹 Boosts Local Employment – Expected to create thousands of jobs in electronics manufacturing.
🔹 Attracts Global Giants – Companies like Syrma SGS, Daikin, LG, and Carrier already investing.
🔹 Strengthens India’s Electronics Ecosystem – Complements Centre’s ₹22,919 crore ECMS scheme.
Major Projects in Pipeline
- Syrma SGS & Shinhyup Electronics (South Korea) – Setting up India’s largest PCB plant & copper-clad laminate factory with ₹1,800 crore investment.
- LG Electronics – Committed ₹5,000 crore for new unit.
- Daikin Industries – Expanding with ₹2,475 crore investment.
- Carrier Global, Wingtech, Sensorem – Combined investments worth ₹11,307 crore.
CM Naidu’s Vision: $100B Electronics Hub
Since taking office in 2024, Chief Minister Nara Chandrababu Naidu has aggressively pushed for electronics manufacturing growth, focusing on:
📌 Sri City (Tirupati) – Emerging as a major electronics cluster.
📌 Orvakal (Kurnool), Kopparthy & Hindupur – New industrial hotspots.
“Andhra Pradesh is open for business. With policy stability, infrastructure, and incentives, we aim to be India’s top electronics manufacturing destination,” said a state government official.
What This Means for India’s Electronics Sector?
🇮🇳 Doubling Electronics Production – India’s sector grew to $115 billion in 6 years (Apple, Samsung driving growth).
🔌 Reducing Import Dependency – More local PCB, semiconductor, and component production.
🏭 Competing with China & Vietnam – Strengthening India’s position in global electronics supply chains.
Final Thoughts
Andhra Pradesh’s Electronics Policy 4.0 is a strategic leap to capture a major share of India’s booming electronics market. With massive subsidies, land discounts, and fast-tracked approvals, the state is poised to become a manufacturing powerhouse, rivalling Tamil Nadu and Karnataka.
Investors & manufacturers keen on leveraging these incentives should act quickly—the early bird benefits won’t last forever!
