Gujarat Aims to Become a Global Electronics Manufacturing Hub with New State Policy

Gujarat Chief Minister Bhupendra Patel has unveiled the Gujarat Electronics Component Manufacturing Policy-2025 (GECMS-2025), reinforcing the state’s reputation as a policy-driven powerhouse under Prime Minister Narendra Modi’s leadership.

Central Government’s MeitY Approval
With the goal of establishing Gujarat as a global leader in electronics manufacturing, this policy ensures that projects approved and supported by the Ministry of Electronics and Information Technology (MeitY) will receive 100% state incentives aligned with central standards. This means eligible projects in Gujarat will benefit from dual incentives from both the central and state governments.

Swift Incentive Disbursement
The policy aligns with the central government’s Electronics Component Manufacturing Scheme (ECMS) and adopts a 100% top-up approach to provide incentives quickly and efficiently. Once a project is approved under MeitY’s ECMS, it automatically qualifies for equivalent grants in Gujarat. The state government will disburse incentives within 30 days of the central government’s payment.

Gujarat’s Semiconductor Strength
Gujarat has already earned a reputation as a manufacturing and automotive hub in India’s industrial landscape, with four operational semiconductor plants. This new policy is expected to boost upstream industries, reduce import dependency, and enhance technological resilience. The state aims to attract over ₹35,000 crore in new investments and create high-skilled jobs in the electronics component manufacturing sector.

Support for Innovation and R&D
The GECMS-2025 policy promotes investment in critical industries, including multi-layer and HDI printed circuit boards, lithium-ion cells, SMD passive components, display and camera modules, electronic parts, and specialized machinery. To bridge the talent gap and foster innovation, the policy includes provisions for generous support for research and development. Recognized institutions in Gujarat can receive matching grants of up to ₹12.5 crore for establishing Centers of Excellence, finishing schools, or applied research labs.

Key Features of the ECMS Policy

• Strengthen Gujarat’s position in global electronics supply chains through component manufacturing.
• Promote local component and sub-assembly production to reduce import reliance, boost exports, and increase value addition in global value chains (GVCs).

Eligibility

• Applications for benefits under this policy must be submitted by July 31, 2025, per central government guidelines.
• All projects approved by MeitY and operational in Gujarat will automatically qualify for benefits.
• Projects planning to establish or already setting up manufacturing units in Gujarat are also eligible.

Incentives

• Units not covered under the Gujarat Electronics Policy 2022-28 are eligible for benefits under this policy.
• Units availing benefits under this policy will not be eligible for incentives under the Gujarat Electronics Policy 2022-28.
• Incentives will adhere to the conditions and thresholds of the central government’s scheme.

Additional Incentives

• Common Infrastructure and Logistics: Need-based support will be provided for the development and modernization of common infrastructure in electronics clusters.

Incentive Disbursement

• The state government will disburse incentives within 30 working days after payments are made under central government-approved schemes.

Policy Duration

• The duration of Gujarat’s policy will align with the central government’s scheme.

Policy Implementation

• The Gujarat Electronics Component Manufacturing Policy-2025 will be implemented by the Gujarat State Electronics Mission (GSEM).