Gujarat eyes ₹35,000 cr investment with new electronics policy

Gujarat has launched the Electronics Component Manufacturing Policy-2025 to attract over ₹35,000 crore in investments and position the state as a global electronics manufacturing hub. Offering dual incentives aligned with the Centre’s ECMS scheme, the policy promotes local production, reduces import dependency, and boosts exports.

In a strategic move to strengthen its position in the global electronics value chain, Gujarat has unveiled the Gujarat Electronics Component Manufacturing Policy-2025 (GECMS-2025). The new policy seeks to transform the state into a key player in global electronics supply chains by fostering local manufacturing of electronic components and sub-assemblies. It aims to reduce import dependency, boost exports, and enhance value addition within global value chains (GVCs).

Targeting over ₹35,000 crore in fresh investments and creating high-skilled employment opportunities, the policy is designed to attract industries and ramp up production capacity in Gujarat’s electronics component sector. A core objective is to build a robust ecosystem that encourages innovation, strengthens supply resilience, and supports the long-term competitiveness of India’s electronics industry.

According to the state government, “projects approved and supported by the MeitY, Government of India, will be eligible for 100% central assistance when established in Gujarat.” These MeitY-approved projects will be entitled to dual incentives — financial support from both the Central and State governments — offering a significant advantage to investors.

The policy aligns closely with the Central Government’s Electronics Component Manufacturing Scheme (ECMS), under which Gujarat will provide a 100% top-up on central assistance. Moreover, “once a project receives approval under the ECMS from MeitY, it will automatically become eligible for the same grant-in-aid in Gujarat.” The state has also committed to ensuring prompt disbursement, promising to release its share of incentives within 30 days of the Central government’s payout.

Focused on key segments, the policy promotes investments in areas such as multi-layer and HDI printed circuit boards, lithium-ion cells, SMD passive components, display and camera modules, and the machinery essential for their manufacturing. To support the innovation pipeline and nurture a skilled workforce, the policy lays strong emphasis on bridging talent gaps, facilitating research, and building institutional capabilities. “Recognised institutions based in Gujarat will be eligible for assistance of up to ₹12.5 crore from the state government to establish centres of excellence, finishing schools, or applied research laboratories.“

To ensure timely implementation, the Government of India has set a deadline of July 31, 2025, for submission of applications to avail benefits under this policy. This timeline underscores the urgency and focused approach the government is adopting to scale up domestic electronics manufacturing.

However, in order to maintain policy integrity and avoid duplication of benefits, the state has clarified that only those units that are not receiving assistance under the Gujarat Electronics Policy 2022–28 will be eligible under GECMS-2025. Similarly, units availing incentives through the new component manufacturing policy will not qualify for benefits under the earlier Gujarat Electronics Policy.

With this initiative, Gujarat aims to create a fertile ground for the growth of component manufacturing while ensuring synergy with national schemes. The combined backing from state and central governments is expected to attract a new wave of investors and manufacturers to Gujarat, positioning the state as a vital hub in India’s electronics manufacturing strategy.