Uttar Pradesh Electronics Component Manufacturing Policy 2025 (UP ECMP-2025; state-level ECMS stack targeting INR 5,000 crore in 11 electronic-component categories, retroactive effective 01 Apr 2025)

Mechanism

UP ECMP-2025 is designed as a sub-national stack-on-top instrument to the central MeitY Electronics Component Manufacturing Scheme (ECMS, notified 28 March 2025). Key features:

• State incentive layering: Entrepreneurs approved under MeitY's central ECMS receive an additional state-level fiscal incentive for projects physically located in Uttar Pradesh. The combined central + state envelope is intended to approach 75–100% effective capex coverage in year-1 disbursements, replicating the dual-incentive architecture used under the India Semiconductor Mission (where UP's own Semiconductor Policy 2024 provides a 50% state top-up on ISM capex grants).
• 11-component priority list: Displays, camera modules, multilayer printed-circuit boards (MLPCBs), magnetics, lithium-ion cells, capacitors, resistors, semiconductor packaging substrates, sensors, connectors, and oscillators. The list mirrors the central ECMS eligibility categories almost exactly, ensuring full overlap with the central screening pipeline.
• Implementation architecture: Nodal agency is UPLC (UP Electronics Corporation Limited). Policy implementation is overseen by a dedicated Policy Implementation Unit and an Empowered Government Committee for project-clearance fast-tracking. Invest UP (state investment-promotion agency) provides single-window state-level clearance harmonised with the central MeitY approval pathway.
• Retroactive effective date: 1 April 2025 — approximately five months before the 3 September 2025 cabinet-gazettement date. This structure signals the Yogi government's intent to allow ECMS-track projects clearance retroactive to FY26 commencement, avoiding a gap year for projects already in pre-approval pipeline.
• Duration: Six years (FY26–FY31), coterminous with the central ECMS support window.

Context within the Big-Four-state ECMP cluster

UP ECMP-2025 completes the inter-state cluster of dedicated ECMS-stacking instruments:

Together these four states cover the top electronics-manufacturing hubs in India and establish a structurally competitive incentive landscape for ECMS-anchored greenfield investment. UP's lower headline investment target (INR 5,000 cr vs Gujarat's INR 35,000 cr) partly reflects UP's different anchor-sector mix: UP's largest electronics cluster is mobile handset final assembly (>50% of national mobile production), whereas Gujarat's GECMP-2025 targets upstream component fabs.

Downstream implications

• Jewar / YEIDA cluster beneficiary: The HCL-Foxconn ATMP JV at Yamuna Expressway Industrial Development Authority (YEIDA) Sector-28 and adjacent Noida/Greater Noida electronics assembly clusters are the most direct beneficiaries of the UP ECMP-2025 incentive stack; these projects can now stack ECMS central + UP state + ISM-linked capex support within the same facility.
• Dixon Technologies (Noida/Greater Noida): Dixon's dominant Noida-based PCB assembly and camera-module operations fall squarely within UP ECMP-2025's 11-component list; the retroactive effective date allows Dixon to claim state benefits on ECMS-approved capex already committed in Q1 FY26.
• Inter-state competition signal: Gujarat's GECMP-2025 (the first state ECMS-stack) set a market-clearing matching level; UP's ECMP-2025 signals that states will compete on implementation speed (single-window harmonisation, fast-track empowered committee) rather than pure incentive quantum, given the absolute incentive level is now roughly uniform across major states.
• UP industrial-policy density rising: ECMP-2025 stacks on UP Semiconductor Policy 2024 + UP Industrial Investment & Employment Promotion Policy 2022 + UP Electronics Manufacturing Policy 2020, building a multi-layer incentive architecture under Yogi's second term (2022–2027).

Open questions

• Whether the retroactive 1 April 2025 effective date will translate into operational reimbursements for projects whose ECMS central approval was granted after April 1 but before September 3, or whether state disbursements are staged to the central release calendar regardless of the state effective date.
• Whether UPLC will publish a separate government order (G.O.) gazette entry to operationalise the policy, or whether the cabinet decision PDF serves as the operative instrument.
• Capex subsidy stacking ceiling: it is unconfirmed whether UP ECMP-2025 allows simultaneous stacking of the state ECMS top-up plus the older UP Industrial Investment & Employment Promotion Policy 2022 horizontal capex subsidy for the same project.