In a strategic move to cement its role as a leading player in India’s electronics manufacturing ecosystem, the Andhra Pradesh(AP) Government is set to introduce a focused Electronic Components Manufacturing policy aimed at boosting the production of electronic components. This initiative comes at a time when India is making aggressive strides toward self-reliance in electronics and semiconductors.
The proposed Electronic Components Manufacturing policy in AP will specifically cater to the needs of component manufacturers, who play a vital role in the electronics value chain but often remain underserved in broader electronics policies.
Recognizing this gap, the state aims to build a robust foundation for manufacturing passive, active, electromechanical, and semiconducting components — critical to everything from mobile phones to electric vehicles and advanced computing systems.
Targeting a Key Gap in India’s ESDM Landscape
Officials from the Andhra Pradesh Electronics and IT Agency (APEITA) revealed that the upcoming policy is being crafted with inputs from industry players, technology think tanks, and academic experts.
The focus will not only be on large manufacturers but also on supporting MSMEs and startups engaged in component-level innovations and production.
India’s electronics manufacturing sector has traditionally relied heavily on imports for key components, particularly from countries like China, Taiwan, and South Korea.
The new policy aims to reverse this dependency by creating a localized, self-sustaining ecosystem within AP, aligning with India’s broader ‘Make in India’ and ‘Atmanirbhar Bharat’ missions.
Infrastructure, Incentives, and Industry Collaboration
The policy will prioritize the development of dedicated industrial clusters and plug-and-play facilities for electronics components production.
Electronic Components Manufacturing policy is affirmed to offer targeted fiscal incentives, R&D support, and skill development programs to attract both domestic and international players.
Moreover, partnerships with academic institutions and R&D centers will play a central role in creating a future-ready talent pool equipped to meet the evolving demands of the electronics components industry.
Strategic Location and Existing Momentum
AP is already home to a growing number of electronics manufacturing units, particularly around the Tirupati and Sri City regions.
With access to ports, improved connectivity, and proactive governance, the state has become a preferred destination for electronics hardware and assembly units.
The upcoming policy is expected to further accelerate investments and job creation in the state. Industry experts believe it could also serve as a model for other Indian states looking to strengthen their position in the Electronics System Design and Manufacturing (ESDM) value chain.
Impetus Towards $300 billion in Electronics Manufacturing by 2026
With India targeting $300 billion in electronics manufacturing by 2026, the focus on component-level manufacturing marks a vital pivot.
