The Andhra Pradesh Electronics Policy 2021-24 was approved by the state Cabinet, paving the way for the development of world-class electronics manufacturing infrastructure, significant improvements in Ease of Doing Business (EoDB) through various process reforms, and a slew of incentives aimed at lowering the cost of doing business in the state.
Andhra Pradesh expects to gain a lot from this first-of-its-kind incentive scheme at a state level, with at least 39,000 direct jobs in the electronics manufacturing sector. As has been seen in the electronics industry in the past, the majority of those positions are expected to be filled by women, and hence the policy would help in women's empowerment through financial independence.
According to G Jaya Lakshmi, principle secretary, information and technology, electronics and communications department, the policy aims to transform the state into a global hub for electronics manufacturing by concentrating on the entire manufacturing value chain, assembly activities, electronics product manufacturing, research, and development (R&D), semiconductor and display fabrication.
Jaya Lakshmi said in a statement that the electronics manufacturing industry is one of the fastest-growing sectors in the country, with the market size expected to hit USD 400 billion by 2025, up from USD 104 billion now.
The new strategy aims to divert the bulk of new electronics manufacturing investments from India and other Southeast Asian countries to Andhra Pradesh, transforming the state into a mature electronics manufacturing ecosystem.
She said the salient features of the policy framework include the promotion of a world-class greenfield Electronics Manufacturing Cluster (EMC), YSR EMC, being developed in Kopparthy in Kadapa district, introduction of a Production Linked Incentive (PLI) scheme in the greenfield clusters which dovetails with Government of India's schemes and incentivises Electronics manufacturers who expand their operations in Andhra Pradesh and increase their production which also leads to higher employment generation in the state.
According to Jaya Lakshmi, the IT, E&C department is currently in talks with several major electronics manufacturers about locating their facilities in the state, which could result in the creation of up to 20,000 direct jobs. The policy framework is a significant step forward in Andhra Pradesh's quest to become a preferred investment destination for the electronics manufacturing industry, and it demonstrates the government's investor friendliness.
According to reports, women make up just 12% of India's manufacturing workforce. As a result, attracting, maintaining, and advancing women's talent in manufacturing is critical to the long-term success of the sector.
