The Government of Andhra Pradesh (GoAP) approved the Andhra Pradesh Electronics Policy 2021-24, which facilitates the creation of world-class Electronics manufacturing infrastructure, improves the Ease of Doing Business (EoDB) considerably through various process reforms, and offers a host of incentives aimed at reducing the cost of doing business in the state. The policy is envisioned to transform the state of Andhra Pradesh 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. 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 the state of Andhra Pradesh and thereby develop the state into a mature Electronics manufacturing ecosystem.
The salient features of the policy framework include the promotion of a world-class greenfield Electronics Manufacturing Cluster (EMC) namely YSR EMC being developed in Kopparthy, Kadapa. Introduction of a Production Linked Incentive (PLI) scheme in the green field clusters which dovetails with Government of India’s schemes and incentivizes Electronics manufacturers who expand their operations in Andhra Pradesh and increase their production which also leads to higher employment generation in the state.
The state of 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. A majority 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.
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 led by the young and dynamic Hon’ble Chief Minister Sri. Y.S. Jagan Mohan Reddy. The department is confident that the release of the Andhra Pradesh Electronics Policy 2021-24 will expedite the grounding of investments and provide employment opportunities to the citizens of Andhra Pradesh.