Gujarat Launches Electronics Component Manufacturing Policy-2025 to Boost Investment

Introduction to GECMS-2025

The Chief Minister of Gujarat, Shri Bhupendra Patel, has introduced the Gujarat Electronics Component Manufacturing Policy-2025 (GECMS-2025), reinforcing the state's reputation as a policy-oriented region under the guidance of Prime Minister Shri Narendra Modi. This initiative aims to position Gujarat as a global center for electronics manufacturing, offering a notable benefit: projects that receive approval from the Ministry of Electronics and Information Technology (MeitY) will qualify for 100% central assistance when established in Gujarat. Consequently, MeitY-approved projects in the state will enjoy dual incentives—one from the Central Government and another from the State Government.

Alignment with Central Government Initiatives

The GECMS-2025 is closely aligned with the Central Government’s Electronics Component Manufacturing Scheme (ECMS), ensuring a complete top-up on central support and timely assistance disbursement. Once a project is approved under the ECMS by MeitY, it automatically qualifies for the same grant-in-aid in Gujarat. The State Government commits to providing its incentives within 30 days of the Central Government's fund release.

Strengthening Gujarat's Manufacturing Sector

Gujarat has emerged as a significant manufacturing and automotive hub within India's industrial framework. With four semiconductor plants currently operational, the newly introduced policy is set to enhance upstream industries, reduce reliance on imports, and bolster technological resilience. The initiative aims to attract investments exceeding ₹35,000 crore and generate numerous high-skilled job opportunities in the electronics component manufacturing sector.

Investment Focus Areas

The policy, unveiled by the Chief Minister, is designed to stimulate investment in critical areas such as multi-layer and HDI printed circuit boards, lithium-ion cells, SMD passive components, display and camera modules, electronic parts, and the necessary machinery for their production. A primary goal of the policy is to address the talent gap, foster innovation, and support research and development initiatives. Recognized institutions in Gujarat can receive up to ₹12.5 crore from the state government to establish Centres of Excellence, Finishing Schools, or Applied Research Laboratories. Additionally, turnover-linked incentives will be available for six years under the GECMS.

Objectives of the Policy

Objectives

• To position Gujarat as a key player in global electronics supply chains by encouraging the manufacturing of electronic components.


• To reduce import dependency and enhance exports by promoting local production of components and sub-assemblies, thereby increasing product value in global electronics value chains (GVCs).


• Applications for benefits under this policy must be submitted by 31st July 2025, in accordance with Government of India guidelines.


• All MeitY-approved projects operating in Gujarat will automatically qualify for benefits under this policy.


• Projects currently under development or proposed in Gujarat will also be eligible for incentives.

Incentives Offered

Incentives

• Units not receiving assistance under the Gujarat Electronics Policy 2022-28 will be eligible for benefits under this policy.


• Units benefiting from this policy will not qualify under the Gujarat Electronics Policy 2022-28.


• Incentives will be provided according to the terms and thresholds set by Government of India schemes.

Additional Support and Implementation

Additional Incentives

• Common Infrastructure and Logistics: Assistance will be provided for the development and modernization of common infrastructure in electronics clusters as needed.

Incentive Distribution

• The State Government will provide assistance within 30 working days after the Central Government disburses funds for approved schemes.

Policy Duration

• The duration of this state policy will align with the Government of India’s scheme.

Policy Implementation

• The Gujarat State Electronics Mission (GSEM) will oversee the implementation of the Gujarat Electronics Component Manufacturing Policy-2025.