Electronics & IT Policy
About Electronics Sector

Andhra Pradesh has emerged as one of the fastest-growing global manufacturing hotspots. Electronics System Design and Manufacturing (ESDM) is one of the focus sectors for the state with the presence of multiple large Original Equipment Manufacturers (OEMs) and Original Design (ODMs) from the semiconductor industry.

Andhra Pradesh has four Electronics Manufacturing Clusters (EMCs), two in Tirupati (EMC 1 and EMC 2), one in Sricity, and another greenfield EMC coming up in Kopparthy. EMC-I & II in Tirupati has plug-and-play facilities with a total built-up area of 8.5 Lakhs sq. ft., out of which 5.5 Lakh sft have been allotted to firms such as Wingtech, Dixon, Neolync, Foxlink, Sunny Opotech, Karbonn, Munoth, TCL, etc. Sricity, another EMC, hosts various consumer electronics firms such as Foxconn, ZTT, Havells, Bluestar, Daikin, Panasonic, Flex, etc. YSR EMC is being developed to have ready-to-built factory sheds, with approximately 30 sheds of Type 1, every 50,000 sft., and 4 sheds of Type 2, each 221,000 sft. Currently, 3 lakh sft of plug-and-play sheds have been developed by the state government, out of which 2 Lakh sft is being allotted to an Indian ESDM major.

Approximately 3.5 million mobile phones are manufactured each month by the facilities present in the state and facilities in the state have the production capacity to manufacture 3 million TVs every year. Additionally, the State also has a defence electronics manufacturing unit set up by Bharat Electronics Limited.

With excellent connectivity to multiple seaports and airports, proximity to large urban centers, robust industrial infrastructure, skilled workforce, low cost of doing business, etc. Andhra Pradesh is an ideal choice for global conglomerates to invest in the Electronics sector and cater to the ever-increasing global demand.

Sector Highlights & Key Initiatives

Only State in India with four dedicated Electronics Manufacturing Clusters (EMC).

YSR EMC is being developed over 500 acres, with a project cost of over INR 750 crores (USD 90 Mn.), to cater to global large-scale electronics industries. YSR EMC offers best-in-class infrastructure coupled with other resources critical to the growth of the Electronic Manufacturing Industry. This cluster is planned to have industrial plots ranging from 0.5 acres to 60 acres fully flexible to meet any requirements. Ready Built Factory (RBFs) are planned as Plug and Play model wherein the prospective units have easy access to the infrastructure and commence commercial production at a rapid pace.

Water, power, and other infrastructure at YSR EMC can support mega semiconductor fabs, display fabs, large-scale OSATs, PCB manufacturing, etc. Additionally, this cluster is also going to attract manufacturers making Mobile handsets, mobile components, and accessories, PV cells & modules, medical electronics, etc.

Industry-focused Electronics Policy released in 2021, with incentives such as Stamp Duty reimbursement, Capital Subsidy, Power Subsidy, Interest subsidy, Logistics Subsidy, and Production Linked Incentives (PLI) enabling low cost of operations and early breakeven.

Marquee Investments

About IT Sector

Andhra Pradesh is renowned to provide the best-in-class infrastructure that enables the formation of a large IT sector. The first State in Southern India with robust energy efficiency and conservation programs offering 24x7 quality power to industry and the lowest HT Industrial tariffs in the country. Additionally, to cater to the growth of IT as a focus sector the State has proposed three concept cities with world-class IT-driven common and social infrastructure, to enable walk-to-work, and to propagate plug-and-play IT office space, and co-working spaces.

The city of Visakhapatnam in the State is the fastest-growing IT hub in the country with the presence of multiple global IT firms and renowned education institutes such as IIM and GITAM, the city is assisting the creation of several IT firms. Tirupati is also fast becoming a Technology Research Hub, being home to IISER and SV University and in proximity to the Satish Dhawan Space Centre (SDSC) operated by ISRO. Moreover, several start-ups created by entrepreneurs in the State, have started operations across multiple tier-II locations.

The State is a renowned knowledge hub in India and is home to premier institutes such as IIT, IISER, IIIT, and IIM as well as over 18 state-sponsored universities, and 346 engineering/MCA colleges. Additionally, the State has always been first in adopting technology into governance.

Sector Highlights & Key Initiatives

The State is developing three IT Concept cities across Visakhapatnam, Tirupati & Anantapur with significant technology presence, availability of human capital, and proximity to user sectors. The IT Concept cities shall attract several IT/ITeS firms to cater to not only domestic but also global markets in the areas of healthcare, education, travel, insurance, banking, etc. Key features of IT Concept Cities shall include:

  • Speedy execution & reduction of cost for the IT industry
  • Offer quick approvals to reduce the time to start operations
  • Seamless connectivity to airports & highways
  • Availability of skilled manpower
  • World-class IT-driven common & social infrastructure
  • Plug-and-play IT office space & co-working spaces

Andhra Pradesh is developing a high-end IT skills university in Visakhapatnam to focus on training top talent in the areas of AI, ML, Data Analytics, & other emerging technologies.

Cost Structure Trends: 20-25% Lower Operating Costs, 5% Average difference in challenger & aspirant cities.

Futuristic IT Policy with provision for Employment Incentives, Power tariffs, Transport subsidies, Work from Home incentives, Quality Certification, and Start-up ecosystem development.

Ranked 7th in Employability, India Skills Report 2022 | Ranked 4th in IT Exports among all states in FY-22 | Ranked 1st in Ease of Doing Business consistently for four consecutive years

Marquee Investments