The Gujarat government has announced a new policy aimed at boosting electronics manufacturing in the state. Chief Minister Bhupendra Patel unveiled the Gujarat Electronics Component Manufacturing Policy 2025 (GECMS-2025) with the goal of making Gujarat a global hub for electronics manufacturing. This policy is part of the government’s efforts to enhance Gujarat’s image as a policy-driven state under Prime Minister Narendra Modi’s leadership.
One of the key features of the GECMS-2025 is that units approved by the Ministry of Electronics and Information Technology (MeitY) will receive 100% central assistance. This means that projects established in Gujarat will benefit from both central and state government incentives. The aim is to simplify the process and ensure that financial support is available in a timely manner.
The new policy aligns with the central government’s Electronics Component Manufacturing Scheme (ECMS) and promises to deliver assistance quickly. Once a project is approved under the ECMS, any new project set up in Gujarat will automatically qualify for similar grants. Following the release of central funds, the state government will disburse its incentives within 30 days.
Gujarat has already established a strong reputation as a manufacturing hub, particularly in the automotive sector. With four active semiconductor plants, the new policy is expected to further stimulate upstream industries, reduce import dependency, and enhance technological resilience.
The GECMS-2025 aims to attract over ₹35,000 crores (approximately £4.2 billion) in new investments in electronics manufacturing. It targets high-skilled employment opportunities for the local workforce. The policy will promote essential industries, including multilayer and HDI printed circuit boards, lithium-ion cells, SMD passive components, display modules, camera modules, and specialized machinery needed for production.
Moreover, the policy encourages innovation and aims to bridge the talent gap by providing generous support for research and development. Institutions in Gujarat that are recognized may receive matching assistance of up to ₹12.5 crores for establishing Centers of Excellence, finishing schools, or applied research labs.
The GECMS-2025 will also offer turnover-linked incentives for a period of six years, further encouraging firms to invest in the state. The primary objectives of the policy include:
– Establishing Gujarat as a strong player in global electronics supply chains through local production of electronics components and sub-assemblies.
– Reducing import dependency and increasing export through value-added production in electronics.
Applications for benefits under this policy must be submitted by July 31, 2025. Projects already approved by MeitY and operational in Gujarat are automatically eligible for incentives. Additionally, any new projects seeking to set up manufacturing units in the state will also receive support.
This policy is designed to complement the existing Gujarat Electronics Policy 2022-28, with clear guidelines on eligibility and benefits. Units that are already receiving assistance under the previous policy will also be eligible for benefits under the new GECMS-2025.
Incentives will be provided based on the conditions set forth by the central government plans. Support will also be available for the modernization of common infrastructure and logistics in electronics clusters.
The GECMS-2025 is expected to play a significant role in the transformation of Gujarat’s manufacturing landscape, aligning with the government’s vision of enhancing industrial growth and creating a robust ecosystem for electronics manufacturing. The implementation of the policy will be overseen by the Gujarat State Electronics Mission (GSEM).
Leave a Reply