The Assam government has announced a massive ₹25,000 crore incentive package to attract semiconductor and electronic component manufacturers to the state, positioning itself as a major player in India’s electronics manufacturing landscape.
Chief Minister Himanta Biswa Sarma made the announcement in New Delhi on Monday following a roundtable meeting with industry leaders, emphasizing the state’s commitment to becoming a semiconductor manufacturing hub. “Various incentives have been topped up over and above the Government of India’s policy,” the Chief Minister stated.
The comprehensive incentive structure includes 60% additional support to electronics component manufacturers, supplementing existing central government schemes. Beyond financial incentives, Assam will provide GST rebates, social infrastructure support, and assistance in developing the power ecosystem necessary for large-scale electronics manufacturing operations.
The state’s policy strategically aligns with the central government’s Electronics Component Manufacturing Scheme, approved by the Union Cabinet in March with a ₹22,919 crore allocation to strengthen India’s electronics supply chain. Following this national initiative, Assam released its own complementary components manufacturing policy.
According to CM Sarma, companies establishing operations in Assam will benefit from a triple advantage: the central government scheme, Assam’s state policy, and the northeast-focused UNNATI scheme (Uttar Poorva Transformative Industrialisation Scheme). This multi-layered support system aims to enhance industrialization and employment across northeastern states while making Assam particularly attractive to investors.
The centerpiece of Assam’s semiconductor ambitions is the Tata Group’s massive manufacturing facility in Jagiroad, representing a ₹27,000 crore investment. CM Sarma provided an optimistic timeline update, stating, “By the end of this year or beginning of next year, we will be able to ship out chips from the Tata semiconductor plant.”
The Tata facility, approved by the Union Cabinet on February 29, 2024, is projected to produce up to 48 million semiconductor chips daily once fully operational. The project moved rapidly from approval to ground-breaking ceremony, demonstrating both corporate commitment and government support for swift implementation.
Building on this flagship project, the Assam government is developing an electronics manufacturing city around the Tata semiconductor plant. The Chief Minister confirmed that this ambitious project will be named the “Ratan Tata Electronics Manufacturing City,” honoring the industrial icon while creating a comprehensive ecosystem for electronics manufacturing.
CM Sarma urged industry leaders to “take the first mover’s advantage in Assam,” highlighting the state’s proactive approach to overcoming geographical challenges through rapid infrastructure development. The government is investing heavily in enhanced roadways, railways, and logistics networks to support industrial operations.
“We have a sufficient amount to be disbursed as of now to facilitate the setting up of the infrastructure,” CM Sarma emphasized, underscoring Assam’s financial readiness to support large-scale industrial investments in electronics manufacturing.
The state’s strategic approach addresses traditional concerns about northeastern India’s connectivity and infrastructure limitations. By combining substantial financial incentives with infrastructure development and leveraging the Tata plant as an anchor investment, Assam aims to create a self-sustaining electronics manufacturing ecosystem.
This initiative represents a significant shift in India’s semiconductor manufacturing landscape, traditionally concentrated in southern and western states. Assam’s entry into this sector could reshape regional industrial development patterns while contributing to national semiconductor self-reliance goals.
The timing aligns with global efforts to diversify semiconductor supply chains and India’s push to reduce dependence on imports. With the Tata facility expected to begin production by 2026, Assam is positioning itself to capture early benefits from this strategic industry development.
The success of this initiative could establish a template for other northeastern states to develop specialized industrial sectors, potentially transforming the region’s economic profile while contributing to national manufacturing capabilities.
