An announcement about the scheme might come as early as next week
Uttar Pradesh is planning to launch a Rs 10,000 crore ($1.2 billion) incentive scheme to promote electronic components manufacturing, a senior state government official said, as Indian states increasingly compete to attract investment in the electronics value chain.
The policy aims to complement the central government’s Electronics Component Manufacturing (ECM) scheme, launched in April with a budget of Rs 23,000 crore, by offering additional fiscal incentives, subsidised land, and infrastructure support to investors in the state.
An announcement about the scheme might come as early as next week.
“We have a very robust ecosystem for electronic components, and we are building on that strength. In fact, within the next week, we will be announcing our new policy on electronic components. The state aims to attract fresh investment of about Rs 25,000 crore in the electronic manufacturing sector. And we are proposing to make provision of approximately Rs 10,000 crore in various forms of support to investors including direct fiscal incentive plus subsidised land and supporting infrastructure,” said the official.
“This policy is designed not only to complement the Government of India’s schemes, but also to offer additional incentives and support to investors who choose to set up their units in Uttar Pradesh,” he added.
“And with this new ECM scheme, the state will not only provide incentive on the pattern of MeitY but also capital support for eligible companies. The state also plans to offer special added incentives as early bird offers for companies that will make investment in this financial year,” he added.
The new scheme will include direct incentives on the lines of the Ministry of Electronics and IT’s (MeitY) programme, as well as capital support and early-bird benefits for companies investing in the current financial year, the official added.
Uttar Pradesh, India’s most populous state, is positioning itself as a tech manufacturing hub amid a national push for electronics self-reliance. The state disbursed Rs 408 crore in incentives to electronics companies in FY 2024–25 and has allocated over Rs 1,000 crore for FY 2025–26.
The initiative also aligns with Uttar Pradesh’s broader strategy to create an "electrilomics" ecosystem—combining electronics, semiconductors, and logistics. The upcoming Jewar Airport, alongside major infrastructure projects and recent announcements like the HCL–Foxconn manufacturing unit, are expected to boost the state’s role in chip packaging, distribution, and export.
India has seen growing competition among states such as Tamil Nadu, Karnataka, Telangana, and Maharashtra, which are rolling out their own electronics and semiconductor policies to capture a share of global supply chains shifting away from China.
Uttar Pradesh’s electronics manufacturing policy is part of its broader goal to position the state as a national electronics and semiconductor powerhouse. Over the past few years, the state has attracted several marquee investors, including Dixon Technologies, Lava, and Samsung, which operates one of its largest mobile manufacturing facilities in Noida. The Noida–Greater Noida corridor has emerged as a key electronics cluster, supported by industrial parks, expressway connectivity, and proximity to the upcoming Jewar airport.
The new ECM scheme is expected to further deepen the component supply chain in the state, reducing reliance on imports and helping anchor end-to-end manufacturing capabilities—from printed circuit boards and semiconductors to final product assembly. State officials say the policy will specifically incentivise units in high-demand verticals such as automotive electronics, mobile components, and consumer appliances.
The state is also aligning its efforts with the India Semiconductor Mission (ISM), seeking to attract chip packaging (OSAT) and ATMP facilities. It is reportedly in talks with several global players, including Taiwanese and American firms, for future investments.