New Electronics Component Manufacturing policy offers 100% matching grants for MeitY projects, ₹12.5Cr for R&D centers & turnover incentives to boost component manufacturing.
GECMS-2025: Key Features & Incentives
1. Transformational Policy Objectives
✔ Position Gujarat as global electronics component manufacturing leader
✔ Reduce import dependency in critical segments
✔ Attract ₹35,000+ crore investments
✔ Create high-skilled jobs in semiconductor ecosystem
2. Financial Incentives & Support
💰 Dual Benefit Scheme:
- 100% matching grant for MeitY-approved projects
- Example: ₹50cr central aid → Additional ₹50cr from Gujarat
- Disbursement within 30 days of central fund release
🏛 Institutional Support:
- Up to ₹12.5 crore for:
- Centers of Excellence
- Finishing schools
- Applied research labs
📈 Turnover-Linked Incentives:
- 6-year production-linked benefits
- Additional SGST reimbursement
3. Focus Component Segments
🔌 Priority Areas:
- Multi-layer/HDI PCBs
- Lithium-ion cells
- SMD passive components
- Display & camera modules
- Semiconductor machinery
4. Strategic Advantages
🚀 Existing Ecosystem:
- 4 operational semiconductor plants
- Auto-electronics synergy (Tata, Suzuki, Ford plants)
⏱ Fast-Track Approval:
- Gujarat State Electronics Mission as single window
- July 31 deadline for first-phase applications
5. Implementation Framework
🔄 Policy Duration: Co-terminus with central ECMS scheme
🚫 Non-Overlap Clause:
- Units must choose between GECMS-2025 or Electronics Policy 2022-28
- New projects get automatic eligibility upon MeitY approval
Why This Matters for India’s Electronics Sector?
1. Supply Chain Resilience
- Reduces 80%+ import dependence for components
- Strengthens mobile/auto/defense manufacturing
2. Talent Development
🎓 Finishing Schools: Address 25,000+ skilled worker shortage
🔬 CoEs: Foster chip design & advanced packaging R&D
3. Global Competitiveness
🌍 Export Potential: $10B+ opportunity in component exports
📱 Downstream Impact: Cheaper smartphones, EVs, IoT devices
Industry Reactions
“This policy finally gives India the financial muscle to compete with Vietnam/China in component manufacturing.”
— Electronics Components Industry Association
*”The 100% matching grant removes the biggest hurdle for high-capex projects.”*
— Semiconductor Startup Founder
Investment Roadmap
📅 2025-26: Establish 2-3 display/PCB mega factories
📊 2027 Target: 30% import substitution in passive components
🚀 2030 Vision: Global sourcing hub for automotive electronics