Gujarat Rolls Out Game-Changing Electronics Policy to Attract ₹35,000 Crore Investment

Gujarat Rolls Out Game-Changing Electronics Policy to Attract ₹35,000 Crore Investment

Gujarat Chief Minister Bhupendra Patel has unveiled the ambitious Gujarat Electronics Component Manufacturing Policy-2025 (GECMS-2025), positioning the state as India’s next major electronics manufacturing hub. This groundbreaking policy aims to attract over ₹35,000 crore in new investments while creating thousands of high-skilled jobs in the rapidly expanding electronics sector.

Key Highlights of GECMS-2025

Dual Incentive Structure

The policy’s standout feature offers 100% top-up incentives for projects approved by the Ministry of Electronics and Information Technology (MeitY). This means companies establishing operations in Gujarat will receive dual benefits – both central government support and matching state incentives. Once the Centre releases its funding, Gujarat commits to disbursing its share within just 30 working days.

Strategic Focus Areas

GECMS-2025 targets critical electronics components including:

1. Multi-layer and HDI printed circuit boards (PCBs)

2. Lithium-ion battery cells

3. Surface Mount Devices (SMDs)

4. Camera and display modules

5. Passive electronic components

6. Specialized manufacturing machinery

Research & Development Support

The policy allocates up to ₹12.5 crore in matching grants to academic and research institutions for establishing Centres of Excellence, Applied Research Laboratories, and Finishing Schools. This initiative aims to bridge the skill gap and build a future-ready workforce aligned with industry requirements.

Implementation Framework

Application Process

The Gujarat State Electronics Mission (GSEM) will serve as the nodal agency for policy implementation. Eligible investors must submit applications by July 31, 2025. Projects already approved under the central ECMS scheme will automatically qualify for state benefits.

Eligibility Criteria

All MeitY-approved projects operating in Gujarat are automatically eligible

Projects under development or proposed in Gujarat qualify for incentives

Units currently receiving benefits under Gujarat Electronics Policy 2022-28 are excluded to avoid duplication

Strategic Advantages

Building on Existing Strength

Gujarat already houses four operational semiconductor fabrication units, providing a strong foundation for the electronics ecosystem. The state has established itself as a leading manufacturing destination with a robust supplier network.

Alignment with National Goals

GECMS-2025 perfectly aligns with the Central Government’s Electronics Component Manufacturing Scheme (ECMS), ensuring seamless integration and maximum benefit utilization. The policy supports the broader “Make in India” initiative while reducing import dependency.

Economic Impact

The policy is expected to:

Generate substantial high-skilled employment opportunities

Reduce India’s dependence on imported electronic components

Enhance the state’s integration into global electronics value chains

Boost exports and drive value addition

What This Means for Industry

This policy represents a significant opportunity for electronics manufacturers seeking to establish or expand operations in India. With Gujarat’s proven track record in industrial development, robust infrastructure, and now enhanced financial incentives, the state is well-positioned to become a major player in global electronics supply chains.

The six-year turnover-linked incentive structure, combined with research support and infrastructure development assistance, creates a comprehensive ecosystem for electronics manufacturing success.

The Gujarat Electronics Component Manufacturing Policy-2025 marks another milestone in the state’s journey toward becoming a global manufacturing powerhouse, offering unprecedented opportunities for investors in the electronics sector.