Haryana is preparing to roll out an updated Electronics System Design & Manufacturing (ESDM) policy under the national Electronics Component Manufacturing Scheme (ECMS) to significantly boost its share of India’s electronics exports and strengthen its manufacturing ecosystem.

Policy Objective & Landscape

India’s electronics manufacturing sector has been growing strongly, at a compound annual growth rate of around 17% since FY15. Despite this growth, Haryana contributes only about 2.9% of the country’s electronics exports. Recognising this gap, the state government aims to position Haryana as a major player in India’s electronics value chain.

Key Features of the New Policy

The forthcoming policy is designed to offer a mix of fiscal and non-fiscal incentives, along with a strong focus on investor facilitation. Key highlights include:

• Reimbursement support for capital and operational expenditure, including investments in green energy, technology acquisition, and research and development.

• Dedicated investor-relationship managers to assist with land acquisition, clearances, and coordination with various departments.

• Active investor outreach to attract both domestic and global electronics manufacturers.

• “Top-up” incentives to supplement national ECMS benefits, enhancing Haryana’s competitiveness against other manufacturing states.

Why It Matters

Electronics manufacturing is not just about production—it plays a crucial role in exports, innovation, and overall trade competitiveness. Haryana’s renewed focus on this sector can:

• Enable deeper participation in global electronics supply chains.

• Generate large-scale employment and skill development opportunities.

• Enhance export performance and attract long-term foreign investment.

• Strengthen India’s position as a global hub for high-tech manufacturing.

Challenges Ahead

While the policy promises strong incentives, its success will depend on how effectively it is implemented. Speed of approvals, infrastructure quality, and availability of skilled talent will determine Haryana’s competitiveness. The state will also need to differentiate itself from established manufacturing hubs such as Gujarat, Tamil Nadu, and Andhra Pradesh.

Current Status

As of late October 2025, Haryana’s ESDM policy is in the pre-rollout phase, with the government finalising key details and outreach efforts to major electronics firms. The initiative signals strong intent from the state to capture a larger share of India’s rapidly expanding electronics market.

Conclusion

Haryana’s new ESDM policy represents a strategic push to transform the state into a high-growth electronics manufacturing destination. By aligning with national initiatives and offering investor-friendly measures, the government aims to attract significant investment, create jobs, and strengthen India’s global trade position in the electronics sector.