Haryana's Electronics Push: How State Aims to Become Manufacturing Hub

The state will soon announce a slew of incentives under its Electronics System Design and Manufacturing (ESDM) Policy, which aims to offer a wide range of fiscal and non-fiscal incentives to attract investment.

In this direction, Chief Secretary Anurag Rastogi on Friday chaired a high-level meeting here to review strategies for setting up electronic component manufacturing plants in the state and to accelerate the growth of the electronics component manufacturing ecosystem.

The Chief Secretary emphasised that the core objective of the state's initiative is to attract major investments, create employment opportunities and strengthen the state's integration into the global electronics value chain.

He noted that while India's domestic electronic production has witnessed impressive growth, rising at a compound annual growth rate (CAGR) of 17 per cent since FY 15, the design and component manufacturing ecosystem remains at a nascent stage.

Currently, Haryana contributes about 2.9 per cent ($0.8 billion) to India's total electronics exports and supports around 1.3 million jobs in the sector. Rastogi underlined that Haryana has immense potential to expand this contribution through targeted policy support, strategic investor engagement, and the creation of enabling infrastructure such as the Electronics Manufacturing Cluster at IMT Sohna.

Under the draft new Electronics System Design and Manufacturing (ESDM) Policy, incentives offered include reimbursement of capital and operational expenditures - expenditure incurred for green energy projects, technology acquisition, etc, support for capacity building and development of research and development and innovation facilities.

Amit Kumar Agrawal, Secretary, Industries and Commerce, said the government of India’s ECMS provides multiple incentive options, including turnover-linked and capital investment-based benefits ranging between one and 25 per cent.

To complement these, Haryana is also exploring the provision of additional top-up incentives similar to those offered by other progressive states such as Andhra Pradesh, Gujarat, and Uttar Pradesh, thereby enhancing the state’s competitiveness in attracting ECMS-approved investors.

- IANS