Uttar Pradesh Bets on Electronics Manufacturing to Broaden Its Industrial Base

Uttar Pradesh is moving to anchor a bigger share of India’s electronics value chain, finalising a new policy to draw component makers, deepen supply links and cut import dependence. The Uttar Pradesh Electronics Component Manufacturing Policy-2025 (UP ECMP-2025), cleared by the state cabinet in early September, takes effect retrospectively from April 1, 2025, for six years and is aligned with the Union government’s Electronics Component Manufacturing Scheme. The policy targets ₹5,000 crore in fresh investment, envisages “lakhs” of direct and indirect jobs, and singles out 11 high-value components—such as displays, camera modules and multilayer PCBs—as priorities for local production.

Officials say the programme is meant to complement national incentives while streamlining state-level clearances. Under UP ECMP-2025, entrepreneurs receive state incentives on top of central benefits, with implementation routed through a nodal agency and an empowered committee to speed decisions. The design is meant to dovetail with India’s broader manufacturing push, including production-linked incentives for electronics and mobiles announced in the Union Budget 2025–26.

The policy arrives as the state seeks to scale beyond assembly into component ecosystems. Chief Minister Yogi Adityanath has directed officials to fast-track roll-out, framing the goals as US$50 billion in electronics output over five years and roughly one million jobs—targets repeatedly cited by senior state officials and reported in national media. Uttar Pradesh’s electronics hardware exports were about ₹37,000 crore in FY 2023–24, underlining a base that the government argues can expand with better logistics and supplier depth.

Infrastructure is a central plank. The upcoming Noida International Airport at Jewar—now slated for inauguration at the end of October with flight operations to follow—has become the logistics showpiece for investors weighing time-to-market. YEIDA is simultaneously planning cargo and logistics parks to plug factories directly into air freight and surface corridors around the Yamuna Expressway industrial belt.

Early moves suggest clustering is gathering pace. The Centre recently approved an electronics manufacturing cluster near Noida under the EMC 2.0 scheme, and YEIDA has green-lit a technology hub where anchor investments, including by Havells, are expected to generate thousands of jobs over the next two to three years. State investment promotion materials also flag multiple electronics hubs under development along the expressway.

The opportunity is sizable, but so are the execution risks. Environmental and land clearances can slow greenfield projects; investors frequently cite the need for predictable timelines and service-level accountability on approvals. Building reliable component ecosystems also requires sustained skilling and vendor development, not just headline subsidies. Industry groups say clarity on the fine print—such as the exact structure of state incentives and how they stack with central schemes—will be critical to tipping location decisions toward Uttar Pradesh rather than rival states with established electronics corridors.

Still, the timing aligns with national tailwinds. New Delhi’s budget lines and policy messaging continue to prioritise electronics as a growth driver, and Uttar Pradesh officials are positioning UP ECMP-2025 as a way to translate that momentum into on-ground manufacturing depth. If the state can pair incentives with credible last-mile execution—land, logistics, skilled labour and quick, transparent approvals—it stands to move from a fast-growing exporter to a genuine hub for core components within India’s electronics supply chain.

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