Gujarat Electronics Component Manufacturing Policy 2025 (GECMP-2025; matching state top-up on MeitY ECMS, targeting INR 35,000 cr investment in PCBs, Li-ion cells, SMD passives, camera/display modules)

Mechanism

GECMP-2025 is structured as a state-matching stack-on-top to the central ECMS notified by MeitY on 28 March 2025. Key features confirmed by the Gujarat State Electronics Mission portal and the CM's announcement:

• Matching fiscal incentive: "Government of Gujarat will provide

matching fiscal incentives approved and disbursed by the Government of India under the ECMS." Once MeitY disburses its share of the central incentive (operations-linked PLI plus a capital subsidy under ECMS), the state releases an equal-size tranche within 30 days.

• Duration mirrors central scheme: The state benefit period is "same

as that of Government of India's Electronics Component Manufacturing Scheme" — i.e., the six-year ECMS support window.

• Eligibility gating: Project must (a) be approved by MeitY under

ECMS and (b) establish the facility in Gujarat. No separate state-level approval ceiling — Gujarat piggy-backs on the central screening.

• R&D track: Recognised Gujarat-based institutions are eligible for

up to INR 12.5 cr each to set up Centres of Excellence, Finishing Schools, or Applied Research Laboratories adjacent to the manufacturing cluster.

Downstream implications

• First sector-focused state stack on ECMS. While Tamil Nadu (Jan 2024),

Uttar Pradesh (Feb 2024), Karnataka (Feb 2025) and Maharashtra (Dec 2025) state policies all stack on top of the India Semiconductor Mission (ISM), Gujarat is the first state to publish a dedicated stack-on-top to ECMS — the components-side scheme. The state already hosts the Tata Electronics fab (Dholera) and Micron ATMP (Sanand) under ISM stacks; GECMP-2025 extends the dual-incentive model from semiconductor fabs to the broader electronics components layer (PCBs, Li-ion cells, SMD passives, optical modules) that ECMS targets.

• Effective central + state envelope. Under ECMS, MeitY pays an

operations-linked PLI plus a capex grant. A Gujarat-located ECMS unit receives the same envelope twice (central + state-matching), materially improving the after-incentive IRR vs identical projects in non-stacking states. This replicates the ISM-Gujarat playbook that drew Tata and Micron, now applied to a sector with more projects but smaller average ticket size.

• Investment target. INR 35,000 cr aggregate target — large relative

to the central ECMS outlay of INR 22,919 cr but plausible given that Gujarat already captured the bulk of ISM-cleared semi capex (Tata Dholera + Micron Sanand + Kaynes Sanand + CG Power Sanand).

• Inter-state competition. UP's open-question (whether to publish a

state ECMS-stack analogous to GECMP-2025) is now sharper — Gujarat has set a market-clearing matching level. Expect Karnataka and Tamil Nadu to follow with state ECMS amendments before the late-July 2025 application close-out window for first-tranche approvals.

Open questions

• Whether the state-matching share will be capped on a per-project basis

for very-large ECMS-approved units (e.g., Li-ion cell gigafactories), or whether matching is unconditional regardless of central tranche size.

• Whether GECMP-2025 will be extended beyond the 31 Jul 2025 initial

application window with a second tranche, or merged into a successor state Electronics Policy 2026.

• Interaction with the Gujarat Industrial Policy 2020 (general capex

subsidies) and Gujarat Semiconductor Policy 2022-27 — whether projects can stack a state ECMS top-up plus the older horizontal capex subsidy in the same fiscal year.