Gujarat announces New Electronics Manufacturing Policy

Gandhinagar, Gujarat – Chief Minister  Bhupendra Patel has announced the Gujarat Electronics Component Manufacturing Policy-2025 (GECMS-2025), further strengthening Gujarat’s identity as a policy-driven state under the visionary leadership of Prime Minister Narendra Modi.

Aimed at transforming Gujarat into a global hub for electronics manufacturing, this new policy brings a significant advantage: projects approved and supported by the Ministry of Electronics and Information Technology (MeitY), Government of India, will be eligible for 100 per cent central assistance when established in Gujarat. Hence, MeitY-approved projects set up in the state will receive dual incentive benefits, one from the Central Government and another from the State Government. 

Thoroughly aligned with the Central Government’s Electronics Component Manufacturing Scheme (ECMS), Gujarat’s GECMS-2025 ensures a 100 per cent top-up on central support and guarantees timely disbursement of assistance. Also, once a project receives approval under the ECMS from MeitY, it will automatically become eligible for the same grant-in-aid in Gujarat. The State Government will disburse its incentive within 30 days of the Central Government releasing its assistance.

Gujarat has established itself as a leading manufacturing and automobile hub in India’s industrial landscape. With four semiconductor plants now operational in the state, the newly announced policy will further strengthen the upstream industries. This development will reduce import dependency and improve technological resilience. The policy aims to attract over ₹35,000 crore in new investments and create substantial high-skilled employment opportunities within the state’s electronics component manufacturing sector.

Unveiled by the Chief Minister, the policy will boost investment in key segments such as multi-layer and HDI printed circuit boards, lithium-ion cells, SMD passive components, display and camera modules, electronic parts, and the additional required machinery essential for their production. A core focus of the policy is to bridge the talent gap, promote innovation and offer support for Research and development initiatives. Recognised institutions based in Gujarat will be eligible for assistance of up to ₹12.5 crore from the state government to establish Centres of Excellence, Finishing Schools, or Applied Research Laboratories. Additionally, under the GECMS, turnover-linked incentives will be provided for six years. The key features, objectives, and incentives of this policy announced by the Chief Minister are as follows:

 Objectives 

– To establish Gujarat as a prominent player in global electronics supply chains by promoting the manufacturing of electronic components.

– By promoting local component and sub-assembly production, reduce import dependency and boost exports, thereby driving product value growth in global electronics value chains (GVCs).

 Eligibility 

– As per Government of India guidelines, applications to avail benefits under this policy must be submitted by 31st July 2025.

– All MeitY-approved projects operating in Gujarat will automatically be eligible for benefits under this policy.

– Projects under development or proposed in Gujarat will also be eligible for incentives under this policy.

Incentives

– Units other than those receiving assistance under Gujarat Electronics Policy 2022-28 will be eligible for benefits under this policy

– Units availing benefits under this policy will not be eligible under the Gujarat Electronics Policy 2022-28

– Incentives will be as per the terms and thresholds of the Government of India schemes

Additional Incentives

– Common Infrastructure and Logistics: Need-based assistance will be provided for the development and modernisation of common infrastructure in electronics clusters

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 remain the same as the Government of India’s scheme

Policy Implementation

– The Gujarat State Electronics Mission (GSEM) will implement the Gujarat Electronics Component Manufacturing Policy-2025.