Emerging Electronics Manufacturing Clusters in India
India’s electronics manufacturing sector is expanding rapidly, driven by strong policy support, global supply chain shifts, and rising domestic demand.
With the government aiming to reach $300 billion in electronics production by 2026, choosing the right location for your manufacturing unit is more critical than ever.
This article explores the top emerging electronics clusters in India and what makes each state a strategic choice for investment.
Why Location Matters for Electronics Manufacturing
Site selection for an electronics manufacturing plant isn’t just about land availability. It affects logistics, access to skilled labor, infrastructure readiness, and eligibility for government incentives.
A well-chosen location can reduce setup costs, improve operational efficiency, and accelerate time-to-market.
VMS Consultants offers specialized electronics manufacturing plant facility setup services, helping businesses evaluate locations and design facilities aligned with operational and regulatory goals.
6 Promising States for Electronics Greenfield Manufacturing
Tamil Nadu
Tamil Nadu is currently India’s top electronics exporter, contributing nearly 37% of the country’s total exports. The state has announced a ₹500 crore Semiconductor Mission and is developing new clusters in Sulur and Palladam.
Sriperumbudur and Oragadam are already home to global giants like Foxconn, Pegatron, and Salcomp. With strong port connectivity, skilled labor, and proactive policies, Tamil Nadu is ideal for large-scale electronics and component manufacturing.
Uttar Pradesh
Noida and Greater Noida have emerged as major electronics clusters, especially for mobile phone manufacturing. Companies like Samsung, Dixon Technologies, and Oppo have set up large facilities here.
The state offers capital subsidies, tax exemptions, and fast-track approvals under its Electronics Manufacturing Policy. Its proximity to Delhi and access to a large consumer market make it attractive for both domestic and export-oriented units.
Karnataka
Bengaluru is known for its electronics design capabilities, hosting R&D centers for Intel, Texas Instruments, and Bosch. The state is also attracting investments in semiconductor packaging and EMS.
Karnataka’s skilled workforce, tech ecosystem, and support for innovation make it ideal for design-led manufacturing. Tata Electronics’ facility in Hosur and Apple’s supplier network are expanding rapidly in the region.
Maharashtra
Pune and Aurangabad are emerging as electronics hubs, supported by MIDC industrial parks and proximity to Mumbai’s financial and export infrastructure. The state offers plug-and-play facilities and incentives for EV and electronics sectors.
Maharashtra’s strategic location, robust logistics, and large consumer base make it suitable for high-volume production and component manufacturing.
Andhra Pradesh and Gujarat
Andhra Pradesh has approved ₹10 lakh crore in industrial investments, with new clusters planned in Donakonda and Sri City. The state offers large land parcels, low power tariffs, and fast approvals.
Gujarat’s Dholera SIR and Mandal Becharaji node are attracting electronics and EV component manufacturers. The state’s ease of doing business and logistics network make it a strong contender for greenfield projects.
What Are the Latest Government Incentives?
The central government has launched the ₹22,919 crore Electronics Component Manufacturing Scheme to boost domestic value addition. Incentives are linked to turnover, capital expenditure, and quality benchmarks.
States are also offering land subsidies, power rebates, and infrastructure support. Tamil Nadu, for instance, covers up to 75% of project costs for new clusters. These incentives can significantly reduce your factory setup budget and improve ROI.
How to Choose the Right State for Your Facility
- Assess your product type and supply chain needs
- Evaluate proximity to electronics clusters and ports
- Check state-level incentives and policy support
- Consider labor availability and training programs
- Plan for scalability and future expansion
VMS Consultants, as a leading manufacturing plant design consultant, helps clients navigate these decisions with data-driven insights and end-to-end project support.
Invest Where Growth Meets Strategy
India’s electronics clusters are evolving into full-fledged ecosystems, offering infrastructure, talent, and incentives for manufacturers.
Choosing the right state can set the foundation for long-term success in a competitive global market.
