With Chandrababu Naidu regaining regional and national prominence, there are high expectations that he, widely credited with bringing the IT revolution to Andhra Pradesh, will succeed in nurturing the state's growing electronic manufacturing industry.
Naidu, along with Bihar’s Nitish Kumar, holds the key to the stability of the NDA government at the Centre as its key political allies, and is expected to receive policy and fiscal support from the Narendra Modi government.
This support is expected to attract significant interest from both Indian and foreign electronic manufacturers, who seek faster clearances and accompanying infrastructure support from the government.
“Dr Chandrababu Naidu enjoys the trust of the mobile and electronics industry. He was a great source of inspiration for our industry during the post-Nokia debacle in 2013-14. From 2014 to 2018, Andhra Pradesh was a top-rated state and is expected to emerge as a strong contender again,” Pankaj Mohindroo, chairman of the Indian Cellular and Electronics Association, told Moneycontrol.
To be sure, the electronics industry in Andhra Pradesh has experienced notable growth in recent years with the setting up of prominent electronics manufacturing clusters.
The state boasts four Electronics Manufacturing Clusters (EMCs), including two in Tirupati (EMC 1 and EMC 2), one in Sri City, and another in Kopparthy, also known as YSR EMC.
The Tirupati EMCs have attracted prominent firms such as Wingtech, Dixon, Neolync, Sunny Opotech, Karbonn, Munoth and TCL. Sri City has become home to various consumer electronics manufacturers, including Foxconn, ZTT, Havells, Bluestar, Daikin, Panasonic, and Flex.
Apple supplier Foxlink, which makes cables for iPhone chargers, has a base in the state. It is expected that more such suppliers will set up shop in Andhra Pradesh.
A senior industry executive working with a leading EMS player, speaking on the condition of anonymity, noted that major electronic manufacturing initiatives began in Andhra Pradesh with EMCs.
“The state will be a serious contender for new investments in the supply chain and electronics. While mobiles are largely established in Sriperumbudur and Noida/Greater Noida, Chandrababu Naidu will drive aggressive growth in this industry. Andhra Pradesh will once again play a critical role in the electronics industry,” the executive added.
For instance, the Tirupati EMC attracted proposals worth Rs 10,000 crore for electronic manufacturing clusters (EMCs) in Renigunta and Kadapa from eight companies last year.
Among these proposals, Sunny Oppotech India Pvt Ltd proposed investing Rs 2,500 crore in mobile camera modules, TCL Group planned Rs 5,000 crore for panel manufacturing, Clair Electronics aimed at investing Rs 90 crore in LED lighting, NeoLync proposed Rs 300 crore for 5G products, S2P intended to invest Rs 850 crore in solar cells, Celkon Resolute planned Rs 1,200 crore for TV panels, and Virtual Maze proposed Rs 80 crore for GPS trackers.
Another industry executive mentioned the proliferation of supply chain players and the state's focus on developing a component ecosystem, anticipating new investments. “Andhra Pradesh will once again be a critical part of the electronics industry. Chandrababu Naidu is pro-industry,” the executive said.
With connectivity to multiple seaports and airports, proximity to large urban centres, coupled with its industrial infrastructure, skilled workforce, and low cost of doing business, Andhra Pradesh is well-positioned to address the ever-increasing global demand, experts assert.
Analysts feel that the state infrastructure now also supports mega semiconductor fabs, display fabs, large-scale OSATs, PCB manufacturing, mobile manufacturers, components and accessories, PV cells and modules, and medical electronics.
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