India's Andhra Pradesh state approves up to $600 million for electronic parts production
In March this year, India's federal government approved a similar plan worth a larger 229.19 billion rupees ($2.62 billion) to boost electronics components manufacturing in the country.
New Delhi and several states have been seeking investments from electronics components makers and offering subsidies as the country looks to bolster domestic supply and reduce dependence on China.
India's electronic production has more than doubled in the last six years to $115 billion in 2024, led by growth in mobile manufacturing by global firms such as Apple (AAPL.O), opens new tab and Samsung (005930.KS), opens new tab. It is now the world's fourth-largest smart phone supplier.
The country aims to more than quadruple that to $500 billion by fiscal 2030, including production of components worth $150 billion, according to the government's top policy think tank Niti Aayog.
Electronics components firms looking to set up factories in Andhra Pradesh will be offered land at a discount of 75%, the state said, adding that they would not have to pay taxes on electricity consumption for the first six years.
The state also plans to offer a 50% capital subsidy to the first 10 firms willing to invest 2.5 billion rupees over five years, or match the subsidy amount New Delhi offers to the investing company, the state said in its draft policy.
Electronics maker Syrma SGS (SYRM.NS), opens new tab has applied for the incentive scheme, the Andhra Pradesh government said.
($1 = 87.4090 Indian rupees)
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