Telangana Electronics Policy

The Indian electronics industry is rapidly expanding, and Telangana is emerging as a hub for Electronics System Design and Manufacturing (ESDM) with its forward-looking Telangana Electronics Policy. As global players look for alternatives to traditional manufacturing bases, Telangana’s strategic investments, infrastructure, and incentives are positioning it as a preferred destination for electronics companies.

This blog explains, Telangana Electronics Policy and explores how it aims to make the state a leader in the electronics manufacturing sector.

Vision and Objectives of Telangana Electronics Policy

The Telangana Electronics Policy aims to transform the state into a globally competitive destination for electronics design, manufacturing, and innovation. The vision is to attract investments, create jobs, boost exports, and encourage entrepreneurship across the electronics value chain.

Key objectives include:

Position Telangana among the top 3 ESDM destinations in India.
Over 2 lakh direct and indirect jobs should be created in the electronics industry.
Encourage the expansion of electronics startups and MSMEs.
Facilitate skill development tailored to industry needs.
Enhance exports through dedicated infrastructure and logistics support.

Target Sectors Under the Policy

Telangana policy focuses on a broad range of electronics verticals to ensure holistic industry development. These include:

Consumer Electronics
Mobile and Smartphone Manufacturing
LED and Solar Products
Automotive Electronics
Telecom and Networking Devices
Medical Electronics
Industrial Automation
Aerospace and Defense Electronics
IoT Devices and Smart Gadgets

This diversity not only reduces risk concentration but also fuels innovation across domains.

Infrastructure and Electronics Manufacturing Clusters

The state government has established world-class Electronic Manufacturing Clusters (EMCs) and Hardware Parks to support production, R&D, and logistics. Major infrastructure highlights include:

1. E-City (Electronic City), Maheshwaram

Spread over 600+ acres, this state-of-the-art facility offers plug-and-play infrastructure with ready factory spaces, testing labs, and logistics connectivity.

2. Hardware Park in Raviryal

This park houses major electronics and aerospace firms and is equipped with power, water, waste management, and data centers.

3. EMC Clusters Across Districts

New EMCs are planned in regions like Sangareddy, Warangal, and Nalgonda to ensure uniform development and decongest Hyderabad.

Incentives and Benefits Under the Telangana Electronics Policy

The policy provides attractive incentives to attract domestic and foreign investments:

✅ Capital Subsidies

Machinery and plants might receive up to a 25% capital investment subsidy.
Additional incentives for MSME electronics units and women-led enterprises.

✅ Land and Infrastructure Support

Preferential land allotment in hardware parks.
Qualified enterprises receive 25% off land and development fees.

✅ SGST Reimbursement

Reimbursement of State GST for a defined period, encouraging local manufacturing.

✅ Power Tariff Subsidy

₹1.50/unit power tariff subsidy for 5 years.

✅ Stamp Duty Reimbursement

100% reimbursement on stamp duty for land transactions related to electronics projects.

✅ R&D and Skill Development Grants

Support for electronics design, embedded systems, and testing labs.
Partnerships with institutions like T-Hub and TASK for customized skilling.

Special Focus on Startups and MSMEs

Recognizing the critical role of small enterprises, the Telangana Electronics Policy offers:

Easy access to low-rent incubation centers.
Financial grants for product development and patent filing.
Facilitation of market linkages with global OEMs.
Access to government procurement through special preference norms.

Ease of Doing Business in Telangana

Telangana industry-friendly approach is backed by the TS-iPASS (Telangana State Industrial Project Approval and Self-Certification System), ensuring:

Time-bound single-window approvals within 15 days.
Self-certification-based approvals for ease of compliance.
Online portal for applications, approvals, and incentive tracking.

With a proactive industrial policy and bureaucratic efficiency, Telangana ranks among the best states in Ease of Doing Business in India.

Telangana’s Competitive Advantage

Telangana offers a compelling mix of advantages for electronics investors:

Centrally located with excellent logistics connectivity.
Availability of skilled workforce from Hyderabad’s engineering colleges.
Proximity to international airport and cargo facilities.
Collaboration with global tech leaders and research institutions.

The presence of companies like Micromax, Radiant Appliances, Skyworth, and VVDN is a testament to the state’s electronics ecosystem strength.

Opportunities for Investors

Telangana provides enormous potential as the Indian electronics market is predicted to reach $400 billion by 2025.

Greenfield manufacturing investments
Joint ventures with Indian ESDM firms
Contract manufacturing and assembling
PCB fabrication and component supply chains
Setting up R&D centers for electronics design

The Final Thought: Telangana – India’s Rising ESDM Powerhouse

Telangana Electronics Policy reflects a futuristic vision backed by strong execution. With fiscal incentives, streamlined approvals, and world-class infrastructure, it offers an enabling environment for companies across the electronics value chain.

Whether you’re an MSME, a large manufacturer, or a global OEM, Telangana is prepared to support your growth in the electronics sector.

How Cretum Advisory Can Help

At Cretum Advisory, we specialize in assisting electronics manufacturers, exporters, and MSMEs in navigating Telangana’s industrial and electronics policies. From identifying eligibility, preparing project reports, securing incentives, GST Registration services, to getting regulatory approvals, we offer end-to-end support.

Whether you’re planning to set up in the E-City or want to leverage policy benefits, our team ensures compliance, efficiency, and peace of mind.

📩 Reach out to us at info@cretumadvisory.com to make your electronics venture a success in Telangana!

Frequently Asked Questions (FAQs)

1. What is the Telangana Electronics Policy?

The Telangana Electronics Policy is a government initiative aimed at promoting electronics manufacturing and design in the state. It provides incentives, infrastructure, and policy support to make Telangana a leading ESDM hub in India.

2. What sectors are covered under the Telangana Electronics Policy?

The policy covers a wide range of sectors, including consumer electronics, mobile manufacturing, LED products, automotive electronics, medical devices, telecom hardware, aerospace, and defense electronics.

3. What incentives are available for electronics manufacturers under this policy?

Incentives include capital investment subsidies, power tariff subsidies, SGST reimbursements, land cost discounts, stamp duty waivers, and R&D grants. Special benefits are also provided to MSMEs and women-led enterprises.

4. Is land allotment available under the Telangana Electronics Policy?

Yes, eligible companies can receive preferential land allotment in designated hardware parks with subsidies on land cost and development charges.

5. What is TS-iPASS and how does it help electronics companies?

TS-iPASS is Telangana’s single-window clearance system that provides industrial approvals within 15 days. It streamlines licensing and registration for electronics companies with self-certification mechanisms.

6. What kind of support is available for R&D and skill development?

The policy encourages electronics R&D through funding support and partnerships with institutions like T-Hub and TASK to provide industry-specific skill development programs.